Growth thory Flashcards
Romer Jones Jones and tonetti Boldrin and Levine (8 cards)
Romer (1990)
Q1: Why did Romer argue that traditional growth models were incomplete?
Traditional models treated technological progress as external and unexplained. Romer made innovation endogenous, showing it results from intentional R&D and investment in nonrival ideas.
Romer (1990) What role do nonrival ideas play in Romer’s model?
Nonrival ideas can be reused without depletion, leading to increasing returns to scale, which allows sustained long-term growth.
Jones (2005) What key element did Jones add to Romer’s model of idea-driven growth?
Jones emphasized the importance of institutions and the allocation of ideas—growth depends not only on creation but on how well ideas are scaled across the economy.
Jones (2005) Why are institutions critical for economic growth in Jones’ view?
Institutions affect how efficiently ideas are implemented and spread. Even with many researchers, poor institutions can limit the impact of innovation.
Jones & Tonetti (2020) Q1: Why are nonrival goods like data underutilized according to Jones & Tonetti?
A1: Because legal and ownership restrictions prevent broad sharing and reuse of data and ideas, reducing their potential contribution to economic growth.
Jones & Tonetti (2020) Q2: What solution do they propose to unlock more growth from ideas?
A2: They suggest reforming intellectual property systems and data-sharing rules to make existing ideas more accessible, especially in the digital economy.
Boldrin & Levine (2005) Q1: What problem do Boldrin & Levine identify with strong IP rights?
A1: Strong IP rights can lead to monopolies and hinder competition, making it harder for ideas to diffuse and for innovation to flourish.
Boldrin & Levine (2005) Q2: What alternatives to strict IP enforcement do they suggest?
A2: They recommend relying on competition, first-mover advantages, and trade secrets to incentivize innovation without stifling the market.
