Romer R&D Model: Introduction

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We introduce the Romer (1990) R&D endogenous growth model. We discuss the shortcomings of learning by doing models, and how the Romer model helps to address these by adding a research and development sector of the economy. In future videos, we shall derive results from each sector of this economy.

Check out the Solow Growth Model playlist for past videos to get up to speed with the assumptions and key equations.

Romer, Paul M. “Endogenous Technological Change.” Journal of Political Economy, vol. 98, no. 5, 1990, pp. S71–S102.

Robert M. Solow, A Contribution to the Theory of Economic Growth, The Quarterly Journal of Economics, Volume 70, Issue 1, February 1956, Pages 65–94

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Insanely useful videos dude, wow!! Keep it up

reinerb
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thanks a lot for giving such a nice video!

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