Lecture 6 15

Lecture 6 15 - Setup – The Research Sector ΔA = γLA A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Setup – The Research Sector ΔA = γLA A Where: LA – Number of workers engaged in Research and Development λ – Diminishing marginal productivity Φ – Diminishing effect of A (the standing on shoulders of giants effect) λ φ • Research sector gets rewarded with patents that allow it to maintain a monopoly in the invention (Not modeled here for simplicity) ...
View Full Document

This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

Ask a homework question - tutors are online