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