Endogenous growth

fragile foundations?

Yunfang Hu, Murray C. Kemp, Koji Shimomura

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The Frankel, Romer and Lucas theories of endogenous growth rest on the assumptions of knowledge-based externalities and price-taking representative agents. It is argued that, in a context of long-run growth, these assumptions are mutually incompatible, that representative agents will cooperate to internalize the externalities and will cease to be price takers, and that, therefore, the relevance of theories based on those assumptions must be questioned.
Original languageEnglish
Pages (from-to)113-115
Number of pages3
JournalReview of Development Economics
Volume10
Issue number1
DOIs
Publication statusPublished - 2006

Keywords

  • externalities (economics)
  • endogenous growth theory
  • equilibrium (economics)
  • business enterprises

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