Ideas Drive Cutting Edge Growth in Economics via Capital Accumulation and Productivity Multipliers
The theoretical framework posits that sustained economic growth at the cutting edge is determined by a mechanism wherein idea accumulation acts as both a productivity multiplier and a driver of capital formation. In this model, new ideas shift the production function upward by increasing output per unit of input, thereby generating excess investment that induces further capital accumulation rather than convergence to a stagnant steady state. This concept integrates catching-up growth dynamics with cutting-edge innovation theory within the domain of macroeconomic development literature, specifically addressing how technological progress disrupts equilibrium paths to enable continuous expansion.
Ideas Drive Cutting Edge Growth in Economics via Capital Accumulation and Productivity Multipliers
The theoretical framework posits that sustained economic growth at the cutting edge is determined by a mechanism wherein idea accumulation acts as both a productivity multiplier and a driver of capit…