An empirical model for endogenous technology in the Netherlands

This article presents an empirical simulation model for the Dutch production sector which is inspired by modern endogenous growth theory. The model intermediates between the formal endogenous growth models and the traditional Dutch policy models, which are specified on a rather ad hoc basis. Productive capacity is described by means of nested CES functions, in which technology capital and human capital are explicitly included as production factors. The model is used to simulate various technological impulses