TY  - JOUR
AU  - Easterly,William
AU  - King,Robert
AU  - Levine,Ross
AU  - Rebelo,Sergio
TI  - Policy, Technology Adoption, and Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4681
PY  - 1994
Y2  - March 1994
UR  - http://www.nber.org/papers/w4681
L1  - http://www.nber.org/papers/w4681.pdf
N1  - Author contact info:
William Easterly
New York University
Department of Economics
19 W. 4th Street, 6th floor
New York NY 10012
Tel: 212/992-8684
Fax: 212/995-4186
E-Mail: william.easterly@nyu.edu

Robert King
Department of Economics
Boston University
270 Bay State Road
Boston, MA  02215
Tel: 617/353-5941
E-Mail: rking@bu.edu

Ross Levine
Department of Economics
Brown University
64 Waterman Street
Providence, RI 02912
Tel: 401/863-2170
E-Mail: ross_levine@brown.edu

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - 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.
ER  -