Invention Growth, and Welfare: A Theoretical Treatment of Technological Change

analysis assume assumption basic model capital deepening Chapter constant returns consumer surplus conventional factors cost Denison determine diminishing returns discount discussed e-rt effect of invention efficiency elasticity of demand estimates examined exogenous external economies factors of production Figure firm's growing at rate growth rate Harrod equilibrium important increasing returns industry interest rate inventive activity inventive inputs inventive process Jewkes labor leadtime level of inventive level of research logarithmic derivative marginal cost marginal product market structure maximize maximum necessary conditions Nelson neoclassical nonsubstitution theorem number of firms optimal path p₁ parameter patent system percent price equations problem production function production of knowledge profits Proposition rate of growth rate of technological ratio relative research inputs returns to scale Ricardo royalty Samuelson shadow prices shown social subsidy technical change technical knowledge techniques technological change theory variables welfare index zero