In this article, we argue that inflation increases complexity pertaining to knowledge production (or R&D). Then, expand a recently developed index based on entropy include the effect of inflation. As result new mechanism in an endogenous growth model, is no longer superneutral. can decrease economic non-linear way, sudden upward shock severely hurt and cut be responsible for take-off. These eff...

We extend Weitzman’s (1998) recombinant growth framework to include endogenous R&D decisions. The analysis is carried out in the (knowledgecapital) state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curve...

This is the latest in our series of Critical Survey articles. The aim of the series is to report on recent developments, to provide an assessment of alternative approaches and to suggest lines of further inquiry. The intention is that the articles should be accessible not only to other academic researchers but also to students and others more practically involved in the economy. Recent Survey a...