Economic growth and economic development 7

Introduction to Modern Economic Growth
13.5. Taking Stock
13.6. References and Literature
13.7. Exercises

598
600
601

Chapter
14.1.
14.2.
14.3.
14.4.
14.5.
14.6.

14. Models of Competitive Innovations
The Baseline Model of Competitive Innovations
A One-Sector Schumpeterian Growth Model
Step-by-Step Innovations*
Taking Stock
References and Literature
Exercises

609
610
623
629
645
646

647

Chapter
15.1.
15.2.
15.3.
15.4.
15.5.
15.6.
15.7.
15.8.
15.9.
15.10.

15. Directed Technological Change
Importance of Biased Technological Change
Basics and Definitions
Baseline Model of Directed Technological Change
Directed Technological Change with Knowledge Spillovers
Directed Technological Change without Scale Effects
Endogenous Labor-Augmenting Technological Change
Other Applications
Taking Stock
References and Literature
Exercises

655
656
660
663

681
686
688
692
693
694
698

Part 5.

Stochastic Growth

705

Chapter
16.1.
16.2.
16.3.
16.4.
16.5.
16.6.
16.7.

16. Stochastic Dynamic Programming
Dynamic Programming with Expectations
Policy Functions and Transitions
Few Technical Details*
Applications of Stochastic Dynamic Programming
Taking Stock
References and Literature

Exercises

707
707
707
707
707
707
707
707

Chapter
17.1.
17.2.
17.3.
17.4.
17.5.
17.6.

17. Neoclassical Growth Under Uncertainty
The Brock-Mirman Model
Equilibrium Growth under Uncertainty
Application: Real Business Cycle Models
Taking Stock
References and Literature
Exercises

709
709
710

710
710
710
710

Chapter 18. Growth with Incomplete Markets
vii

711