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  3. American Economic Review
  4. March 2002
  5. Sources of U.S. Economic Growth in a World of Ideas

Sources of U.S. Economic Growth in a World of Ideas

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Abstract

Rising educational attainment and research intensity in recent decades suggest that the U.S. economy is far from its steady state. This paper develops a model reconciling these facts with the stability of U.S. growth rates. In the model, long-run growth arises from the worldwide discovery of ideas, which depends on population growth. Nevertheless, constant growth can temporarily proceed at a faster rate, provided research intensity and educational attainment rise steadily over time. Growth accounting reveals that these factors explain 80 percent of recent U.S. growth, with less than 20 percent coming from world population growth. (JEL O40, E10)

Citation

Jones, Charles, I. 2002. "Sources of U.S. Economic Growth in a World of Ideas ." American Economic Review, 92 (1): 220-239. DOI: 10.1257/000282802760015685

JEL Classification

  • O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence