American Economic Review Vol. 89 No. 2 1999
Growth: With or Without Scale Effects?
Abstract
The property that ideas are nonrivalrous leads to a tight link between idea-based growth models and increasing returns to scale. In particular, changes in the size of an economy’s population generally affect either the long-run growth rate or the long-run level of income in such models. This paper provides a partial review of the expanding literature on idea-based models and scale effects. It presents simple versions of various recent idea-based growth models and analyzes their implications for the relationship between scale and growth.
- DOI
- 10.1257/aer.89.2.139
- Volume
- 89
- Issue
- 2
- Pages
- 139-144
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref