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SD ✦ NN

Romer R&D

Knowledge stock: dA/dt = δ·L_A^λ·A^φ. Output: Y=K^α(A·L_Y)^(1−α). Allocate workers between making goods (L_Y) and ideas (L_A). Endogenous tech growth depends on research share.

t0.0
A
Y
g_A (endog.)
L_A / L