Abstract
There has been a long tradition, going back to Adam Smith (1776), that technological progress is somehow intrinsically associated with increasing Retums. In more recent times, this connection has been emphasized by Young (1928), Nicholas Kaldor (1957), and, still more recently, by Arrow (1962), Shell (1966), and Romer (1990). There is, however, more than one interpretation of the relation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arrow, K.J. (1962), ‘The Economic Implications of Learning-by-Doing’, Review of Economic Studies, 29, 155–73.
Arrow, K.J. (1987), ‘The Demand for Information and the Distribution of Income’, Probability in the Engineering and Information Sciences, 1, 3–13.
Cournot, A.A. (1838), Recherches sur les principes mathématiques de la théorie des richesses (Paris), English trans., N.T. Bacon, 1897, Researches into the Mathematical Principles of the Theory of Wealth (New York: Macmillan).
Dixit, A. and Stiglitz, J. (1977), ‘Monopolistic Competition and Optimum Product Diversity’, American Economic Review, 67, 297–308.
Kaldor, N. (1957), ‘A Model of Economic Growth’, Economic Journal, 67, 581–624.
Romer, P. (1990), ‘Are Nonconvexities Important for Understanding Economic Growth?’, American Economic Review, Papers and Proceedings, 80, 97–103.
Shell, K. (1966), ‘Towards a Theory of Inventive Activity and Capital Accumulation’, American Economic Review, Papers and Proceedings, 56, 62–8.
Smith, A. (1776), An Inquiry into the Nature and Causes of the Wealth of Nations (Glasgow edition (1976) Oxford: Oxford University Press.
Young, A. (1928), ‘Increasing Retums and Economic Progress’, The Economic Journal, 38, 527–42.
Editor information
Editors and Affiliations
Copyright information
© 1998 Kenneth J. Arrow
About this chapter
Cite this chapter
Arrow, K.J. (1998). Innovation and Increasing Retums to Scale. In: Arrow, K.J., Ng, YK., Yang, X. (eds) Increasing Returns and Economic Analysis. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26255-7_24
Download citation
DOI: https://doi.org/10.1007/978-1-349-26255-7_24
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-26257-1
Online ISBN: 978-1-349-26255-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)