Original title: Discrete Dynamic Endogenous Growth Model: Derivation, Calibration and Simulation
Authors: Kodera, J. ; Van Tran, Q. ; Vošvrda, Miloslav
Document type: Papers
Conference/Event: MME 2016. International Conference Mathematical Methods in Economics /34./, Liberec (CZ), 2016-09-06 / 2016-09-09
Year: 2016
Language: eng
Abstract: Endogenous economic growth model were developed to improve traditional growth models with exogenous technological changes. There are several approaches how to incorporate technological progress into a growth model. Romer was the first author who has introduced it by expanding the variety of intermediate goods. Overall, the growth models are often continuous. In our paper we formulate a discrete version of Romer's model with endogenous technological change based on expanding variety of intermediates, both in the final good sector and in the research-development sector, where the target is to maximize present value of the returns from discovering of intermediate goods which should prevail introducing costs. These discrete version then will be calibrated by a numerical example. Our aim is to find the solution and analyse the development of economic variables with respect to external changes.
Keywords: discrete optimization problem; endogenous technological progress; growth model; Romer's model
Project no.: GBP402/12/G097 (CEP)
Funding provider: GA ČR
Host item entry: Proceedings of the 34th International Conference Mathematical Methods in Economics MME 2016, ISBN 978-80-7494-296-9

Institution: Institute of Information Theory and Automation AS ČR (web)
Document availability information: Fulltext is available at external website.
External URL: http://library.utia.cas.cz/separaty/2019/E/vosvrda-0508335.pdf
Original record: http://hdl.handle.net/11104/0299787

Permalink: http://www.nusl.cz/ntk/nusl-403637


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