Bellettini, Giorgio; Ottaviano, Gianmarco I.P. - Fondazione ENI Enrico Mattei (FEEM) - 2003
We study an OLG economy where productivity growth comes from two alternative sources: process innovation and learning …-by-doing. There is a trade-off between the two in so far as frequent technological updates reduce the scope for learning on existing … prefer learning. We model the interaction between overlapping generations and policy makers as a dynamic common agency …