Cozzi, G. and Giordani, P. E. and Zamparelli, L. (2007) 'The refoundation of the symmetric equilibrium in Schumpeterian growth models.', Journal of economic theory., 136 (1). pp. 788-797.
We provide a refoundation of the symmetric growth equilibrium characterizing the research sector of vertical R&D-driven growth models. We argue that the usual assumptions made in this class of models leave the agents indifferent as to where targeting research: hence, the problem of the allocation of R&D investment across sectors is indeterminate. By introducing an “ε-contamination of confidence” in the expected distribution of R&D investment, we prove that the symmetric structure of R&D investment is the unique rational expectations equilibrium compatible with ambiguity-averse agents adopting a maxmin strategy.
|Keywords:||R&D-driven growth models, Indeterminacy, Ambiguity, ε-contamination.|
|Full text:||Full text not available from this repository.|
|Publisher Web site:||http://dx.doi.org/10.1016/j.jet.2006.10.006|
|Record Created:||15 Feb 2010 16:35|
|Last Modified:||20 Aug 2010 12:15|
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