Romer model: Difference between revisions
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| Rate of discovery of new ideas || <math>\bar\theta</math> || | | Rate of discovery of new ideas || <math>\bar\theta</math> || | ||
|- | |- | ||
| Technology || ''A'' || | | Technology || ''A'' || || || || Endogenous || | ||
|- | |- | ||
| Number of people trying to discover new ideas || <math>L_A</math> || | | Number of people trying to discover new ideas || <math>L_A</math> || | ||
|} | |} | ||
==Mathematical formalism== | ==Mathematical formalism== | ||
Revision as of 21:08, 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):
