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A TIME SERIES TEST OF INNOVATION‐DRIVEN ENDOGENOUS GROWTH
Author(s) -
SEDGLEY NORMAN H.
Publication year - 2006
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1093/ei/cbj017
Subject(s) - endogenous growth theory , economics , human capital , stock (firearms) , construct (python library) , capital deepening , physical capital , capital consumption allowance , econometrics , gross domestic product , macroeconomics , classical economics , labour economics , financial capital , capital formation , market economy , mechanical engineering , computer science , engineering , programming language
This article finds evidence that ideas and innovation are a key force explaining postwar growth in the U.S. economy. Utilizing data on patents issued since 1851, I construct a measure of the growth rate of knowledge. Capital stock estimates, human capital estimates, and real gross domestic product per worker growth rates are combined with the knowledge growth series to construct a time series test of endogenous innovation growth models. The results support the endogenous innovation approach but suggest that the accumulation of the per worker capital stock and changes in average human capital per worker are at least as important. (JEL 030 , C32 )