Lucas, Robert E. and Moll, Benjamin 
ORCID: 0009-0003-6067-359X
(2014)
Knowledge growth and the allocation of time.
Journal of Political Economy, 122 (1).
1 - 51.
ISSN 0022-3808
Abstract
We analyze a model economy with many agents, each with a different productivity level. Agents divide their time between two activities: producing goods with the production-related knowledge they already have and interacting with others in search of new, productivity-increasing ideas. These choices jointly determine the economy's current production level and its rate of learning and real growth. We construct the balanced growth path for this economy. We also study the allocation chosen by an idealized planner who takes into account and internalizes the external benefits of search. Finally, we provide three examples of alternative learning technologies and show that the properties of equilibrium allocations are quite sensitive to two of these variations.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.journals.uchicago.edu/toc/jpe/current |
| Additional Information: | © 2014 The University of Chicago |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 05 Nov 2019 15:48 |
| Last Modified: | 12 Dec 2024 01:57 |
| URI: | http://eprints.lse.ac.uk/id/eprint/102385 |
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