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Abstract

Growth 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 Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 6 (2001)
Issue (Month): 1 (March)
Pages: 39-53

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Handle: RePEc:kap:jecgro:v:6:y:2001:i:1:p:39-53

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1. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
2. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
3. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
   
   • Galor, Oded & Weil, David, 1999. "From Malthusian Stagnation to Modern Growth," CEPR Discussion Papers 2082, C.E.P.R. Discussion Papers.
4. Kelly, Morgan, 1997. "The Dynamics of Smithian Growth," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 939-64, August.
   
   • Kelly, M., 1996. "The Dynamics of Smithian growth," Papers 96/9, College Dublin, Department of Political Economy-.
5. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
6. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
7. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May.

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1. links for 2010-11-15
   by Jim in Our Word is Our Weapon on 2010-11-16 03:03:25

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Cited by:

1. Fishman, Arthur & Simhon, Avi, 2002. " The Division of Labor, Inequality and Growth," Journal of Economic Growth, Springer, vol. 7(2), pages 117-36, June.
2. Lagerlof, Nils-Petter, 2003. " Gender Equality and Long-Run Growth," Journal of Economic Growth, Springer, vol. 8(4), pages 403-26, December.
3. Galor, Oded & Moav, Omer, 2001. "Evolution and growth," European Economic Review, Elsevier, vol. 45(4-6), pages 718-729, May.
4. Castellacci, Fulvio, 2011. "Theoretical models of heterogeneity, growth and competitiveness: insights from the mainstream and evolutionary economics paradigms," MPRA Paper 27525, University Library of Munich, Germany.
5. Tomas Kögel & Alexia Prskawetz, 2000. "Agricultural productivity growth and escape from the Malthusian trap," MPIDR Working Papers WP-2000-002, Max Planck Institute for Demographic Research, Rostock, Germany.
   
   • Kogel, Tomas & Prskawetz, Alexia, 2001. " Agricultural Productivity Growth and Escape from the Malthusian Trap," Journal of Economic Growth, Springer, vol. 6(4), pages 337-57, December.
   • Fürnkranz-Prskawetz, Alexia & Kögel, Tomas, 2000. "Agricultural Productivity Growth and Escape from the Malthusian Trap," CEPR Discussion Papers 2485, C.E.P.R. Discussion Papers.
6. Michael Koenig & Jan Lorenz & Fabrizio Zilibotti, . "Innovation vs. Imitation and the Evolution of Productivity Distributions," Discussion Papers 11-008, Stanford Institute for Economic Policy Research.
   
   • König, Michael & Lorenz, Jan & Zilibotti, Fabrizio, 2012. "Innovation vs imitation and the evolution of productivity distributions," CEPR Discussion Papers 8843, C.E.P.R. Discussion Papers.
7. McDermott, John, 2002. " Development Dynamics: Economic Integration and the Demographic Transition," Journal of Economic Growth, Springer, vol. 7(4), pages 371-409, December.
8. Connolly, Michelle & Peretto, Pietro F, 2003. " Industry and the Family: Two Engines of Growth," Journal of Economic Growth, Springer, vol. 8(1), pages 115-48, March.

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