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FORSCHUNGSINVESTITIONEN UND MAKROÖKONOMISCHE MODELLE — EIN WIRTSCHAFTSTHEORETISCHES DILEMMA?
Author(s) -
Weizsäcker Carl Christian VON
Publication year - 1969
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1969.tb00913.x
Subject(s) - economics , dilemma , growth model , technical progress , mathematical economics , exponential function , constant (computer programming) , econometrics , mathematics , macroeconomics , computer science , mathematical analysis , geometry , programming language
SUMMARY The paper analyses the possibilities of incorporating research activities into macroeconomic growth models. It discusses three attempts by P helps , U zawa , and S hell who have developed models in which the rate of technical progress of an economy can be influenced by the amount of research. The models of P helps and U zawa yield Golden Age equilibrium solutions. But they use assumptions which are unsatisfactory. The model of S hell does no longer imply a constant but an exponentially increasing equilibrium rate of growth. It is more plausible in its assumptions. It is argued that Golden Age models with exponential growth of output are unfit to deal with the problems of the implications for growth coming from research and other sources of produced technical progress. Being in the dilemma between sticking to exponential growth models and analyzing produced technical progress we should opt for the latter.