NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Technology Adoption and Growth

Stephen L. Parente, Edward C. Prescott

NBER Working Paper No. 3733*
Issued in June 1991
NBER Program(s):   EFG

Technology change is modeled as the result of decisions of individuals and groups of individuals to adopt more advanced technologies. The structure is calibrated to the U.S. and postwar Japan growth experiences. Using this calibrated structure we explore how large the disparity in the effective tax rates on the returns to adopting technologies must be to account for the huge observed disparity in per capita income across countries. We find that this disparity is not implausibly large.

*Published: Revised version "Barriers to Technology Adoption and Development" Journal of Public Economics, April 1994, pp. 298-321

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