Romer model: Difference between revisions
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The Romer model is a [[long-run economic growth model]]. | The Romer model is a [[long-run economic growth model]]. | ||
==Variables in the model== | |||
{| class="sortable wikitable" | |||
! Name !! Variable !! Unit !! Set of possible values !! Rival input? !! Variable type !! Notes | |||
|- | |||
| Rate of discovery of new ideas || <math>\bar\theta</math> || | |||
|- | |||
| Technology || ''A'' || || || || Endogenous || | |||
|- | |||
| Number of people trying to discover new ideas || <math>L_A</math> || | |||
|} | |||
==Mathematical formalism== | ==Mathematical formalism== | ||
In addition to the equations for the Solow–Swan model, there is an equation describing the discovery of new ideas (Jones & Vollrath, p100): | In addition to the equations for the [[Solow–Swan model]], there is an equation describing the discovery of new ideas (Jones & Vollrath, p100): | ||
:<math>\dot A = \bar \theta L_A</math> | :<math>\dot A = \bar \theta L_A</math> | ||
Latest revision as of 21:11, 16 September 2017
The Romer model is a long-run economic growth model.
Variables in the model
| Name | Variable | Unit | Set of possible values | Rival input? | Variable type | Notes |
|---|---|---|---|---|---|---|
| Rate of discovery of new ideas | ||||||
| Technology | A | Endogenous | ||||
| Number of people trying to discover new ideas |
Mathematical formalism
In addition to the equations for the Solow–Swan model, there is an equation describing the discovery of new ideas (Jones & Vollrath, p100):
