Separating private returns to capital from social returns to capital, that is, the idea that investment in capital may have positive spillover effects as new ideas and new ways of doing things can be easily copied by others, was first advocated by
A)Robert Barro
B)Robert Lucas
C)Robert Samuelson
D)Paul Solow
E)Paul Romer

Question

Quizplus · Accepted Answer

The idea of separating private returns to capital from social returns to capital was first advocated by Paul Romer in his landmark paper "Endogenous Technological Change" which was published in 1990. Romer is a leading economist who has made significant contributions to the study of economic growth and development. He is best known for his work on "new growth theory" which emphasizes the role of ideas, knowledge, and innovation in driving economic growth.

Separating Private Returns to Capital from Social Returns to Capital