What Causes Over-investment in R&D in Endogenous Growth Models?
(2014)
Journal Article
Denicolò, V., & Zanchettin, P. (2014). What Causes Over-investment in R&D in Endogenous Growth Models?. Economic Journal, 124(581), 1192-1212. https://doi.org/10.1111/ecoj.12132
Endogenous growth models may exhibit either under-or over-investment in R&D. The possibility of over-investment is generally attributed to a business-stealing e¤ect that arises as the latest innovator destroys and/or appropriates previous incumbent's... Read More about What Causes Over-investment in R&D in Endogenous Growth Models?.