The Forum > Article Comments > Inside the black box: Paul Romer’s endogenous growth theory > Comments
Inside the black box: Paul Romer’s endogenous growth theory : Comments
By Flavio Romano, published 31/10/2018Romer’s analysis begins with the insight that innovations are based on ideas and an intrinsic characteristic of ideas is that they are non-rivalrous.
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Posted by diver dan, Wednesday, 31 October 2018 9:13:26 AM
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IE questions the profit motive. A good jumping off point highlighting profiteering monopolies such as privatised power companies, overcharging consumers with little to no restraints from government regulations!
Quote*…Consequently, the market will tend to supply a less than socially optimal level, as markets tend to do with positive externalities, resulting in market failure…*
Except that doesn't happen necessarily, as the example of cheap badly engineered Chinese crap flooding the market, forcing success by lack of alternative, onto the consumer through profiteering retailers.
Quote*…Therefore, as the long run rate of economic growth depends on the rate at which innovation and knowledge grow, the public sector has a vital role to play in supplementing the private provision of research and education to correct this market failure…*
Demanding more resources for education at the expense of other more urgent investments into public health and housing.
Hillary Clinton for president…the author neglected to include those lines.