Endogenous Technological Change

This influential work presents a model where growth is propelled by technological progress resulting from deliberate decisions by agents responding to market incentives.

Technology is treated as a nonrival, partially excludable input, leading to monopolistic competition and knowledge spillovers.

Key findings include that human capital stock determines the growth rate, research receives suboptimal allocation in equilibrium, global market integration boosts growth, and population size alone does not suffice for sustained growth.