Adopting a two-sector overlapping generations model, this paper studies the influence of asymmetric technology absorption and producers' lobbying on the path of technological change. The underlying assumption of the paper is that, in its formulation of industrial policy, the government is open...

In this study we assume that government is distorted as it is open to the influence of producers' collective action. Remaining within the confines of industrial policy debates, the study draws attention to the role that institutional arrangements and asymmetries in sectoral technology absorption...

This study investigates the effects of lobbying and institutions on the direction of technological change in a two-sector overlapping generations model. Simulation results suggest that in an environment with unbiased institutions producers' rent-seeking activities direct the economy towards a...