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Most industries go through a "shakeout" phase during which the number of producers in the industry declines. Industry output generally continues to rise, however, which implies a reallocation of capacity from exiting firms to incumbents and new entrants. Thus shakeouts seem to be classic...
Persistent link: https://www.econbiz.de/10012466146
Machines are more expensive in poor countries, and the relation is pronounced. It is hard for a Solow (1956) type of model to explain the relation between machine prices and GDP given that in most countries equipment investment is under 10% of GDP. A stronger relation emerges in a Solow (1959)...
Persistent link: https://www.econbiz.de/10012472957
In this survey, I discuss four sources of growth of knowledge: research, schooling, learning by doing, and training. In trying to disentangle what is important, I emphasize the following facts: (1) even the most advanced countries spend far more on adoption of existing technologies than on...
Persistent link: https://www.econbiz.de/10012473484
We model research as a signal on an unknown parameter of a technology. We distinguish applied from basic research and show that firms in the same industry can optimally choose different research portfolios, and that basic research can seem to have a higher rate of return than applied research,...
Persistent link: https://www.econbiz.de/10012473549
I estimate a model in which new technology entails random adjustment costs. Rapid adjustments may cause productivity …
Persistent link: https://www.econbiz.de/10012468120
following three facts: 1. Since the early 1970's there has been a slump in the advance of productivity. 2. The price of new … explanations are: 1. Productivity slowed down because the implementation of information technologies was both costly and slow. 2 …
Persistent link: https://www.econbiz.de/10012472163
One usually accounts for output growth in terms of the growth of the primary inputs: labor, physical capital, and possibly human capital. In this paper we account for growth with labor and with intermediate goods. Because we have no measures of the extent of adoption of most intermediate goods...
Persistent link: https://www.econbiz.de/10012475273
We reexamine several bodies of data on the growth of output, labor, and capital, within the context of a model that admits the possibility of an externality to the capital input. The model is an augmented version of Paul Romer's (1987) reformulation of the Solow model. Unlike Romer, however, we...
Persistent link: https://www.econbiz.de/10012475847
A paradigm is presented where both the extent of financial intermediation and the rate of economic growth are endogenously determined. Financial intermediation promotes growth because it allows a higher rate of return to be earned on capital, and growth in turn provides the means to implement...
Persistent link: https://www.econbiz.de/10012475848
raises economic uncertainty and may cause measured productivity to decline. The equilibrium growth distribution is negatively …
Persistent link: https://www.econbiz.de/10012482243