NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Policy, Technology Adoption, and Growth

William Easterly, Robert King, Ross Levine, Sergio Rebelo

NBER Working Paper No. 4681
Issued in March 1994
NBER Program(s):   EFG

This paper describes a simple model of technology adoption which combines the two engines of growth emphasized in the recent growth literature: human capital accumulation and technological progress. Our model economy does not create new technologies, it simply adopts those that have been created elsewhere. The accumulation of human capital is closely tied to this adoption process: accumulating human capital simply means learning how to incorporate a new intermediate good into the production process. Since the adoption costs are proportional to the labor force, the model does not display the counterfactual scale effects that are standard in models with endogenous technical progress. We show that our model is compatible with various standard results on the effects of economic policy on the rate of growth.

download in pdf format
   (182 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4681

Published: Economic Growth and the Structure of Long Term Development, Luigi L. Pasinetti and Robert M. Solow, eds. St. Martin's Press, 1994.

Users who downloaded this paper also downloaded these:
Hall and Khan w9730 Adoption of New Technology
Parente and Prescott w3733 Technology Adoption and Growth
Easterly and Rebelo w4499 Fiscal Policy and Economic Growth: An Empirical Investigation
King and Rebelo w3185 Transitional Dynamics and Economic Growth in the Neoclassical Model
Rivera-Batiz and Romer w3528 Economic Integration and Endogenous Growth
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us