Time-to-build, obsolescence and the technological paradox
AbstractThe paper focusses on the technological paradox. To analyze the possible temporary negative effect of an innovation we make use of a flow representation of production. Our aim is to show that such phenomenon can be justified by a simple property of the production process: in real time costs strictly come before proceeds. Moving in the same direction of Amendola (1972), and extending an overlooked result in Belloc (1980), we analyze the obsolescence effect induced by a rise in the interest rate. Furthermore, we analyze the role of capital market stickiness on the timing of the technological paradox and on the distribution of the obsolescence effect among the different stages of a vertical integrated production system.
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Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 23 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/525148
Technological paradox; Technology adoption; Time-to-build; Obsolescence;
Other versions of this item:
- Fabrizio Patriarca, 2010. "Time-to-build obsolescence and the technological paradox," Working Papers 6, Doctoral School of Economics, Sapienza University of Rome, revised 2010.
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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