We consider endogenous growth without scale effect. The model setting is the same

as Romer $(1990)$ done in class except two points. First, population grows at the

rate of n$.$ Second, knowledge production follows

$$At $=$

u LAtA

$\backslash$phi

t

$,\backslash$phi in $(0,1)$

where $\backslash$phi stands for the fishing$-$out effect, i$.$e$.,$ it is getting more difficult to come up

wit a new idea after a lot of ideas have been already created. $($see Jones $(1995).)$