Template-type: ReDif-Paper 1.0
Author-Name: Zon, Adriaan van
Author-workplace-name: MERIT 
Title: ICT-Investment, Knowledge Accumulation and Endogenous Growth
Abstract: In this paper we present an endogenous growth model based on Lucas (1988). We have extended the Lucas model by incorporating ICT-capital next to human capital. We take account of spillovers from ICT use in human capital formation to final output production. The effects on growth of these spillovers depend very much on whether they are external or completely internalised. We find that welfare is positively affected, the stronger these spillovers are, but also the more these spillovers are internalised. In addition, we find that in the case of limited internalised knowledge spillovers, we may face a multiple equilibria steady state growth situation, that has an inherent tendency to select the non-optimum (high growth) equilibrium in which all types of capital are ‘over accumulated’, including ICT-capital. This suggests that there is room for policy intervention here, because there exists an ‘optimum’ value of the knowledge-spillover parameter where both equilibria coincide and over accumulation does not happen.
Keywords: economics of technology ; 
Series: Research Memoranda
Creation-Date: 2001
Number: 037
File-URL: https://unu-merit.nl/publications/rmpdf/2001/rm2001-037.pdf
File-Format: application/pdf
File-Size: 365284
Handle: RePEc:unm:umamer:2001037