Facts and distortions in an endogenous growth model with physical capital and varieties

Sequeira, T.N. (2012), "Facts and distortions in an endogenous growth model with physical capital and varieties", Portuguese Economic Journal, 11(3), 171-188.
Abstract:

This article studies a model with physical and human capital accumulation and varieties. The model includes several distortions: duplication effects, spillovers, creative destruction, surplus appropriability, and an erosion effect. We show that the duplication effect in R&D is essential to make the model replicate several stylized facts linked with R&D. We evaluate the distance to the optimal solution, comparing the strength of each distortion.

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