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Endogenous Technological Change Paul M. Romer The …

Endogenous Technological ChangePaul M. RomerThe Journal of Political Economy, Vol. 98, No. 5, Part 2: The Problem of Development: AConference of the Institute for the Study of Free Enterprise Systems. (Oct., 1990), pp. URL: Journal of Political Economyis currently published by The University of Chicago use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtainedprior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content inthe JSTOR archive only for your personal, non-commercial contact the publisher regarding any further use of this work. Publisher contact information may be obtained copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printedpage of such JSTOR Archive is a trusted digital repository providing for long-term preservation and access to leading academicjournals and scholarly literature from around the world.

The argu- ment in this section is fundamental to the motivation for the particu- TECHNOLOGICAL CHANGE S73 lar model of monopolistic competition that follows, but it is more general than the model itself. In the specific model outlined in Section 111, a firm incurs fixed design or research and development costs when it creates a new good. ...

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