Jones model (Ofer Abarbanel online library)

The Jones model is a growth model developed in 1995 by economist Charles I. Jones.

The model is essentially identical to the Romer model (1990), in particular it generalizes or modifies the description of how new technologies, ideas or design instructions arise. This should take into account the criticism made of the Romer model that the long-term growth rate depends positively on the size of the population (economies of scale). This is problematic in several respects: on the one hand larger countries do not necessarily grow faster. On the other hand, an increasing population or intensified research work did not increase the growth rate on average.[1] Furthermore, the extent of influence from the current state of knowledge on new inventions (standing on shoulders effect).

References

  1. ^Charles I. Jones (1995). “R&D-based models of economic growth”. Journal of Political Economy. 103 (4): 759–784. doi:10.1086/262002. JSTOR 2138581.

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Ofer Abarbanel online library

Ofer Abarbanel online library

Ofer Abarbanel online library