Homogeneity masquerading as variety: The case of horizontal innovation models

    Research output: Contribution to journalArticlepeer-review

    6 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

    Bibliographical note

    Copyright:
    Copyright 2009 Elsevier B.V., All rights reserved.

    Keywords

    • Dixit-Stiglitz technology
    • Horizontal innovation

    ASJC Scopus subject areas

    • Economics and Econometrics

    Fingerprint

    Dive into the research topics of 'Homogeneity masquerading as variety: The case of horizontal innovation models'. Together they form a unique fingerprint.

    Cite this