The AK model of economic growth withendogenous level of the technology

Theoretical bases of economics and management

A modification of the ЛЯ-model of economic growth is proposed in which the technology parameter (i. e. the coefficient at physical capital in the production function) can grow endogenously as result of R&D expenditures. A version of the model with constant rates of investment in physical capital and technological progress formalized by a nonlinear dynamic system is considered. Then the optimization problem setup is discussed.