Toshihiro Okada (2002) The R&D based Endogenous Growth Model: R&D Workers, Skill Premium and Productivity Growth.
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This paper attempts to explain the features of the recent U.S. economy by applying the transitional dynamics analysis of the R&D based endogenous growth model. It tries to explain the observed comovements of three variables: the relative wage rate of high skilled labour, the share of R&D workers and per capita output growth rate show a sharp decline in the beginning of 1970s followed by a gradual increase. The paper shows that an unexpected structural change, which induces a change in the allocation of high skilled workers, pushes the economy away from the steady state along the saddle path and the economy, thereafter, moves back gradually towards the steady state.
This is a Accepted version This version's date is: 2002 This item is not peer reviewed
https://repository.royalholloway.ac.uk/items/5bf99ea1-f165-9dce-ca7c-ba8e7c6bc122/1/
Deposited by Leanne Workman (UXYL007) on 02-Nov-2012 in Royal Holloway Research Online.Last modified on 02-Nov-2012
©2002 Toshihiro Okada. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including © notice, is given to the source.