Discrete Dynamic Endogenous Growth Model: Derivation, Calibration and Simulation

0508335 - ÚTIA 2020 RIV CZ eng K - Conference Paper (Czech conference)
Kodera, J. - Van Tran, Q. - Vošvrda, Miloslav
Discrete Dynamic Endogenous Growth Model: Derivation, Calibration and Simulation.
Proceedings of the 34th International Conference Mathematical Methods in Economics MME 2016. Liberec: Technical University, 2016 - (Kocourek, A.; Vavroušek, M.), s. 419-424. ISBN 978-80-7494-296-9.
[MME 2016. International Conference Mathematical Methods in Economics /34./. Liberec (CZ), 06.09.2016-09.09.2016]
R&D Projects: GA ČR(CZ) GBP402/12/G097
Institutional support: RVO:67985556
Keywords : growth model * endogenous technological progress * Romer's model * discrete optimization problem
OECD category: Economic Theory
http://library.utia.cas.cz/separaty/2019/E/vosvrda-0508335.pdf

Endogenous economic growth model were developed to improve traditional growth models with exogenous technological changes. There are several approaches how to incorporate technological progress into a growth model. Romer was the first author who has introduced it by expanding the variety of intermediate goods. Overall, the growth models are often continuous. In our paper we formulate a discrete version of Romer's model with endogenous technological change based on expanding variety of intermediates, both in the final good sector and in the research-development sector, where the target is to maximize present value of the returns from discovering of intermediate goods which should prevail introducing costs. These discrete version then will be calibrated by a numerical example. Our aim is to find the solution and analyse the development of economic variables with respect to external changes.
Permanent Link: http://hdl.handle.net/11104/0299787