The Role of Knowledge and Capital in Economic Growth
This paper discusses new ideas in growth theory focusing on how to make sustained growth feasible. It first reviews models that broadened the notion of capital to include human capital and the state of technology. The paper next surveys models which make technological progress endogenous by allowing firms to undertake investment aimed either at producing new goods or at developing new production methods. The paper concludes by predicting that newer work on growth will move from the study of the frontier countries to those that are behind the technological curve and can advance simply by adopting the technologies created by others.