Abstract
Recent theoretical models of economic growth emphasize the importance of external effects for the accumulation of factors of production (Romer, 1986, 1990; Lucas, 1988). Externalities imply that an increase in the stock of reproducible factors leads to an improvement in the level of technology that cannot be fully appropriated by the agent making the investment. As a result, the aggregate or social return on the investment is greater than the private return obtained by the individual agent. A crucial assumption is usually that externalities spread over the entire economy, affecting the level of technology of each individual firm.
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© 2004 Springer-Verlag Berlin Heidelberg
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Vayá, E., López-Bazo, E., Moreno, R., Suriñach, J. (2004). Growth and Externalities Across Economies: An Empirical Analysis Using Spatial Econometrics. In: Anselin, L., Florax, R.J.G.M., Rey, S.J. (eds) Advances in Spatial Econometrics. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-05617-2_20
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DOI: https://doi.org/10.1007/978-3-662-05617-2_20
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07838-5
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