This chapter reviews the theoretical and empirical literature on learning by doing. Many of the distinctive theoretical … implications of learning by doing have been derived under the assumption that the cost–quantity relationships observed in numerous … empirical studies are largely the result of passive learning and some further require that passive learning is unbounded. The …

Why do some societies fail to adopt more efficient political and economic institutions in response to changing economic … productivity, cultural beliefs and institutions. In our model, production shocks that benefit one sector of the economy may induce …