Homogeneity masquerading as variety

The case of horizontal innovation models

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

The literature on 'horizontal innovation' claims to analyse cases where unbounded endogenous growth comes from an increasing variety of intermediate goods. The present paper contends that a good sample of representative models in this literature share two essential assumptions regarding production technology, and that these assumptions together amount to assuming the homogeneity of various intermediate goods. In these models, there is no variety of intermediate goods to increase owing to R&D activities; what increases is a mass of a single homogeneous intermediate good.

Original languageEnglish
Pages (from-to)379-392
Number of pages14
JournalCambridge Journal of Economics
Volume31
Issue number3
DOIs
Publication statusPublished - 2007 May 1

Fingerprint

Innovation model
Intermediate goods
Homogeneity
Innovation
Production technology
Endogenous growth

Keywords

  • Dixit-Stiglitz technology
  • Horizontal innovation

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Homogeneity masquerading as variety : The case of horizontal innovation models. / Park, Man Seop.

In: Cambridge Journal of Economics, Vol. 31, No. 3, 01.05.2007, p. 379-392.

Research output: Contribution to journalArticle

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