The Romer model with monopolistic competition and general technologies

摘要

I augment the Romer model of endogenous technological progress with a general CRS production function in labor and intermediate inputs. This determines markups and profits of the innovators in function of the number of inputs. Under imperfect substitutability the economy can converge to a steady state (as under a nested CES technology), replicating the properties of neoclassical growth due to a decreasing marginal profitability of innovation, or to constant growth linear in population growth as in semi-endogenous growth models. (C) 2019 Elsevier B.V. All rights reserved.