Growth: With or Without Scale Effects?

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Abstract
The property that ideas are nonrivalrous leads to a tight link be- tween idea-based growth models and increasing returns to scale. In particular, changes in the size of an economy's population generally aect either the long-run growth rate or the long-run level of income in such models. This paper provides a partial review of the expanding literature on idea-based models and scale eects. It presents simple versions of various recent idea-based growth models and analyzes their implications for the relationship between scale and growth.

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