speculative agents overreact to observed technology shocks. When making forecasts about the future, speculative agents behave like … to confirm the stronger technology response. For moderate levels of risk aversion, the forecast errors observed by the … improvements in technology, investment and consumption booms, and faster trend growth, reminiscent of the U.S. economy during the …

real factor prices (the dual) can diverge from each other as well as from true technology growth. These distortions … potentially give rise to dynamic reallocation effects that imply that change in technology needs to be measured from the bottom up … aggregate and sectoral technology growth as well as reallocation effects. We also apply our framework to reconcile divergent TFP …

This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the … pattern of technology diffusion can be exponential, which would predict that nations would exhibit positive catch-up with the …