The discussion over this request takes place on the quality assurance side. Here the concrete reason, why this article on the QA sides was registered: needs URV examination (someone has access to Flemming (Hrsg.): Modern - a critical stocktaking; Metropolis, Marburg 1996; "“New ones"” of beginnings in the growth theory (Stephan Seiter) - unwikifiziert besides. -- srb 00:19, 1 June 2006 (CEST)

Also in the model of Aghion/Howitt the research sector is the main source of the economic growth. In their model technical innovations in a quality improvement of products, contrary to the model of Grossman/Helpman express themselves, already existing, with which the innovation process in the expansion that expresses itself product variety. The two models resemble each other in the point that are taken up to the analysis. By one that research successes can be not completely denationalized, understands otherwise one would be not possible continuous economic growth.

In the model of Aghion/Howitt develop intermediate products, which, if they are improved, increase the productivity in the Konsumgutsektor. Producers of the improved goods realize monopoly revenues, while the manufacturers of the obsoleten goods must accept losses. From it a connection between today's and tomorrow's effort of research results. The duration of a monopoly is determined by the research activities of the next period. For the own research expectation is decisive over the future research of others. If an enterprise proceeds from higher research expenditure of the competitors in the future, it will reduce the own research efforts, since thereby the danger is larger to lose the temporary monopoly faster. Aghion/Howitt call this connection between today's and tomorrow's research "“effect of the creative destruction"”. Growth requires therefore the correct mixture between research today and research tomorrow.

Articles in category "Aghion Howitt model"

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• A Model of Growth through Creative Destruction
  Author(s): Aghion, Philippe & Howitt, Peter. 1992 Abstract: A model of endogenous growth is developed in which growth is driven by vertical innovations that ...


• Aghion Howitt Model
  A model of vertical innovations has the natural property that new inventions make the previous technology obsolete. Thus, Aghion & Howitt


• An Evolutionary Interpretation of the Aghion & Howitt (1992) Model
  Downloadable ! Author(s): Gerald Silverberg (MERIT) & Murat Yildizoglu (IFReDE-E3i). 2002 Abstract: We test the robustness of the main growth mechanisms of ...


• An evolutionary interpretation of the Aghion & Howitt (1992) Model
  Author(s): Gerald Silverberg & Murat Yildizoglu. 2002 Abstract: No abstract is available for this item.


• Citations: Endogenous Growth Theory - Aghion, Howitt (ResearchIndex)
  2 For reviews, see Barro and Sala i Martin 1995 and Aghion and Howitt 1998. 3 For more details about two sector endogenous growth models, see Lucas 1988, ...


• Economics 421 Winter 2006 Topics in Macroeconomics Allen Head ...
  Notes on the Aghion-Howitt Model. of Growth Through Creative Destruction. The exposition here follows that of Aghion