According to learning by doing with spillover model, the growth rate is constant and endogenous to the incentives of decision makers. if key assumption of transition dynamics is tendency of rate of discoveries diminish as capital becomes more, how the create transition dynamics use specifc policy or increase some specific cost?

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ANSWER In the learningbydoing with spillover model the growth rate is influenced by the actions and incentives of decisionmakers and it is assumed that the rate of discoveries diminishes as capital ac... View the full answer