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The Romer Model

  • Michael Bräuninger
Chapter
  • 136 Downloads
Part of the Contributions to Economics book series (CE)

Abstract

In this chapter we analyse a model where economic growth is driven by endogenous technical progress. The production structure is of the type introduced in Romer (1987) and Romer (1990). Economic growth is driven by technical progress which comes from the development of new intermediate products. Intermediate products are developed in a research sector. Incentives for research are given by patents which guarantee profits for the development of new intermediate products. We will assume a constant saving ratio as in Bräuninger (2001). We will analyse how public debt impinges on the research activity and on economic growth. As in the other chapters, we first consider the fixed deficit ratio and then we turn to the fixed tax rate.

Keywords

Intermediate Product Output Growth Public Debt Budget Deficit Capital Growth 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Michael Bräuninger
    • 1
  1. 1.Institut für Theoretische VolkswirtschaftslehreUniversität der Bundeswehr HamburgHamburgGermany

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