Romer model

From Devec
Jump to: navigation, search

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 \bar\theta
Technology A Endogenous
Number of people trying to discover new ideas L_A

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):

\dot A = \bar \theta L_A

See also

External links