The Refoundation of the Symmetric Equilibrium in the Schumpeterian Growth Models
Cozzi, Guido and Giordani, Paolo E. and Zamparelli, Luca (2006) The Refoundation of the Symmetric Equilibrium in the Schumpeterian Growth Models. [Working Paper]. p. 13.
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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 indfferent as to where targeting research: hence, the problem of the allocation of R&D investment across sectors is indeterminate. By introducing an "[epsilon]-contamination of con dence" 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 maximin strategy.
|Item Type:||Report / Paper (Working Paper)|
|Research documents and activity classification:||Working Papers > Refereed Working Papers / of international relevance|
|Divisions:||Department of Business and Management|
|Additional Information:||This paper has been accepted and published in the "Journal of Economic Theory", Vol. 136(1), 2007.|
|Uncontrolled Keywords:||R&D-Driven GrowthModels, Indeterminacy, Ambiguity, [epsilon]-contamination.|
|MIUR Scientific Area:||Area 13 - Economics and Statistics > SECS-P/01 Political Economy|
|Deposited By:||Maria Teresa Nistico|
|Deposited On:||25 Nov 2010 11:03|
|Last Modified:||25 Nov 2010 11:22|
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