R&D Policy in Economies with Endogenous Growth and Non-Renewable Resources Agnani, Betty Gutiérrez, María José Iza, Amaia Endogenous growth R&D (Research and Development) Non-renewable resources Overlapping generations Infinitely lived agents Balanced growth path The aim of this paper is to analyze how active R&D policies affect the growth rate of an economy with endogenous growth and non-renewable resources. We know from Scholz and Ziemens (1999) and Groth (2006) that in infinitely lived agents (ILA) economies, any active R&D policy increases the growth rate of the economy. To see if this result also appears in economies with finite lifetime agents, we developed an endogenous growth overlapping generations (OLG) economy à la Diamond which uses non-renewable resources as essential inputs in final good’s production. We show analytically that a sufficient condition guaranteeing that an active R&D policy increases the growth rate of the economy actually implies a reduction of the use of the non-renewable resources. Numerically we show that in economies with low intertemporal elasticity of substitution (IES), active R&D policies lead the economy to increase the depletion of non-renewable resources. Nevertheless, we find that active R&D policies always imply increases in the endogenous growth rate, in both scenarios. Furthermore, when the IES coefficient is lower (greater) than one, active R&D policies affect the growth rate of the economy in the ILA more (less) than in OLG economies. 2014-05-02T09:10:54Z 2014-05-02T09:10:54Z 2007 report Agnany, B.; Gutiérrez, M.J.; Iza, A. R&D Policy in Economies with Endogenous Growth and Non-Renewable Resources. Universidad de Granada. Departamento de Teoría e Historia Económica (2007). (The Papers; 07/09). [http://hdl.handle.net/10481/31508] http://hdl.handle.net/10481/31508 eng The Papers;07/09 http://creativecommons.org/licenses/by-nc-nd/3.0/ open access Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License Universidad de Granada. Departamento de Teoría e Historia Económica