Linkages, Thresholds, and Development
AbstractGrowth is rare historically, with short expansions interspersed with long periods of stasis. We examine how well this can be explained by a general class of Schumpeterian growth models that treat development as a progress through a space of commodities, from simple to more complex goods. This process of sequential innovation in a partially ordered network of commodities is called linkage formation. The central result of this article is that Schumpeterian growth models exhibit generic threshold behavior. Below a critical probability of linkage formation, development gradually ceases. Above the critical probability, innovation continues with probability one. Copyright 2001 by Kluwer Academic Publishers
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economic Growth.
Volume (Year): 6 (2001)
Issue (Month): 1 (March)
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