External vs. Internal Learning-by-Doing in an R&D Based Growth Model

Federal Reserve Bank of Richmond WP No. 98-1

Posted: 2 Sep 1998

See all articles by Andreas Hornstein

Andreas Hornstein

Federal Reserve Bank of Richmond

Dan Peled

University of Haifa - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: March 1998

Abstract

In an economy where growth is determined by the interaction of R&D and learning-by-doing (LBD), changes of factors that stimulate either one of these activities affect growth differently than in an economy where growth is determined by either R&D or LBD alone. In particular, when firms anticipate that R&D for new types of goods threatens the future efficiency gains which they derive from LBD, a more efficient learning process or a larger workforce might reduce rather than increase the growth rate on a balanced growth path.

JEL Classification: D92, O31, O40

Suggested Citation

Hornstein, Andreas and Peled, Dan, External vs. Internal Learning-by-Doing in an R&D Based Growth Model (March 1998). Federal Reserve Bank of Richmond WP No. 98-1, Available at SSRN: https://ssrn.com/abstract=121872

Andreas Hornstein (Contact Author)

Federal Reserve Bank of Richmond ( email )

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Dan Peled

University of Haifa - Department of Economics ( email )

Haifa 31905
Israel

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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