This paper presents a theoretical model to analyze the effects of technology change on growth rates of income and human capital in the uncertain environments of technology. The uncertainty comes from two sources; the possibility of a technology advance and the characteristics of new...

This paper presents a theoretical model and empirical evidence to explain the observation that a country in which the level of technology approaches the technology frontier tends to rely more on technology creation than adoption, and to invest more in basic research than in development. The...

Although developing countries face a drastic increase in their greenhouse gas emissions, mitigation actions against climate change do not rank high among their priorities. The obvious reason lies in the necessity for them to continue the development process, which is characterised by pressing...

The relationship between economic growth and pollution is very complex, depending upon a host of different factors. Thus the study of this phenomenon represents a challenging endeavor. While most economics papers begin with theory and support that theory with econometric evidence, the literature...

Environmental policy affects the distribution of market shares if intermediate goods are differentiated in pollution intensity. When innovations are environmental friendly, a tax on emissions skews demand towards new goods, which are the most productive. In this case along a balanced growth path...

The long-run evolution of per-capita income exhibits a structural break often associated with the Industrial Revolution. We follow Mokyr (2002) and embed the idea that this structural break reflects a regime switch in the evolution of technological knowledge into a dynamic framework, using Airy...

Hochentwickelte Industriestaaten bedürfen permanenter Innovation, um weiterhin wachsen zu können. Nur dadurch ist es möglich, auf dem Weltmarkt Preise zu erzielen, die günstige Terms of Trade und ein hohes Lohnniveau ermöglichen. Die Förderung von Innovation wird damit zu einer zentralen...

Technological progress has long been posited to be crucial in a country's economic growth. This paper argues that coordination failure in a country's new technology investment can be one of the barriers in a country's capital accumulation and economic growth. The global game established by...

In seinem einleitenden Beitrag unterstreicht Ludger Wößmann, ifo Institut und LMU, dass Quellen modernen Wachstums in der Wissensgesellschaft bedeuten vor allem Investitionen in den Wissensbestand der Bevölkerung (Bildung), Generierung und Vermarktung neuen Wissens (Innovation) und...