Economic growth in a world of ideas: the US and the leading European countries

In: Applied Economics, Band 40, Heft 22, S. 2901-2909

Abstract

This article discusses the ideas creation model that was initially formulated by Paul Romer and later generalized and empirically applied by Charles Jones. In particular, we generalize Jones´ model to include catching up to a technological frontier, which improves the empirical results for European countries, and ensures convergence to the technological frontier in the steady state.