MODELLING OF ECONOMIC GROWTH WITH LEARNING BY DOING AND KNOWLEDGE SPILLOVERS

A generalized parametric model as a modified Romer model is considered. This model describes the dependence of the output of the index of knowledge available to the firm. Result of this paper is a family of models between the two extremes - the neoclassical model of decentralized type and nonstationary AK-model. The model assumes that all discoveries are unexpected by-products of the investment and that these discoveries instantly become common knowledge.