Technologies for endogenous growth

I microfound endogenous growth through neoclassical technologies with substitutable inputs created by monopolistically competitive innovators. Investment delivers innovations of declining profitability, but increasing labor force generates growth depending on structural technological parameters that determine the elasticities of profits and output with respect to the mass of inputs. For instance, with a Cobb-Douglas technology in labor and a CES aggregator of inputs, the growth rate declines with the substitutability between inputs and increases in the share of inputs in production. I also explore other classes of technologies and novel specifications that can deliver long run growth. (c) 2023 Elsevier B.V. All rights reserved.