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Information Transmission and the Bounds to Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Guido Cozzi (University of Rome "La Sapienza")
Luca Spinesi
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This paper studies the long run growth implications of the presence of information acquisition and transmission costs. We assume that vertical innovation requires researchers to be informed on the current version of the product they want to improve upon; and we also assume that quasi-fixed managerial inputs are required for production in the manufacturing sector. Despite the fact the increases in total factor productivity cause R&D and managerial quasi-fixed labor costs to decrease in the same way as variable labor costs, the presence of these costs is sufficient to rule out the strong scale effect at all levels of the intertemporal returns to ideas. More importantly, the upper bound of long run growth rates crucially depends on information transmission costs.
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Article provided by Berkeley Electronic Press in its journal Topics in Economic Analysis & Policy .
Volume (Year): 4 (2004)
Issue (Month): 1 ()
Pages: 1168-1168
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Keywords: R&D and Growth Information and Communication Technologies Scale Effect References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Grossman, G.M. & Helpman, E., 1989.
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[Downloadable!] (restricted) Aghion, Philippe & Howitt, Peter, 1992.
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Other versions:
Aghion, P. & Howitt, P., 1990.
"A Model Of Growth Through Creative Destruction ,"
DELTA Working Papers
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Aghion, P. & Howitt, P., 1989.
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527, Massachusetts Institute of Technology (MIT), Department of Economics.
Romer, Paul M, 1990.
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Other versions: Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992.
"In search of scale effects in trade and growth ,"
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Other versions: Timothy Van Zandt & Roy Radner, 1998.
"Real-Time Decentralized Information Processing and Returns to Scale ,"
Discussion Papers
1233, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Attar, Mustafa A., 2008.
"Science in the Third Dimension of R&D ,"
MPRA Paper
9427, University Library of Munich, Germany.
[Downloadable!]
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