This
preview
has intentionally blurred sections.
Sign up to view the full version.
This
preview
has intentionally blurred sections.
Sign up to view the full version.
This
preview
has intentionally blurred sections.
Sign up to view the full version.
This
preview
has intentionally blurred sections.
Sign up to view the full version.
Unformatted text preview: 7 Special Features of Knowledge Nonrivalry: one person’s use of an idea doesn’t limit another’s use of it. Nonexcludability: inventor cannot exclude others from using it. Patents exist to prevent firms from under-producing knowledge when allocating R&D resources – externality. 8 Growth Accounting y = Tf(k) – How can we measure T? We do so as a residual. Formula gives K y T TMPP k k T 1 k y T y k T 3 k ∆ ∆ ∆ ∆ ∆ = + = + 9 We can measure everything in the equation except for the growth rate of technology – it is measured by the residual. Called the Solow residual....
View
Full Document
- Winter '08
- Rossana
- technical progress, Malthusian Growth Theory
-
Click to edit the document details