Schumpeterian growth with variable demand elasticity.
Variable Demand Elasticity preferences are introduced into a canonical two‐sector R&D model. The departure from the traditional CES specification yields novel growth dynamics: for a sufficiently high population growth rate, a semi‐endogenous balanced growth path ("BGP") of drastic innovation is char...
| Published in: | Economic Inquiry Vol. 63; no. 4; pp. 1110 - 1127 |
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| Format: | Article |
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Wiley-Blackwell
Oct2025
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=188606688&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 188606688 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Oct2025 vid: 63 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 188606688 10.1111/ecin.13302 ppf: 1110 ppct: 17 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 512KB tig: atl: Schumpeterian growth with variable demand elasticity. aug: au: Sorek, Gilad affil: Department of Economics, Auburn University, Auburn Alabama, , USA su: Economic expansion Elasticity (Economics) Technological innovations Endogenous growth (Economics) Research & development Creative destruction sug: subj: Economic expansion Elasticity (Economics) Technological innovations Research and Development in Biotechnology Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) Endogenous growth (Economics) Research & development Creative destruction keyword: population growth and technological progress Schumpeterian growth variable demand elasticity population growth and technological progress Schumpeterian growth variable demand elasticity ab: Variable Demand Elasticity preferences are introduced into a canonical two‐sector R&D model. The departure from the traditional CES specification yields novel growth dynamics: for a sufficiently high population growth rate, a semi‐endogenous balanced growth path ("BGP") of drastic innovation is characterized, along which economic growth is determined by the population growth rate. However, for a sufficiently low population growth rate, the model economy converges to the limit values of demand elasticity and a fully endogenous growth regime of non‐drastic innovation. A few stylized facts undermine the empirical relevance of the semi‐endogenous BGP with drastic innovation to developed economies. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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