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Technological Complexity and Economic Growth

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Author Info

  • Mihaela Iulia Pintea

    (Florida International University)

  • Peter Thompson

    (Florida International University)

Abstract

Over the last fifty years there have been large secular increases in educational attainment and R&D intensity. The fact that these trends have not stimulated more rapid income growth has been a persistent puzzle for growth theorists. We construct a model of endogenous economic growth in which income growth, R&D intensity, and educational attainment depend on the complexity of new technologies. An increase in complexity that makes passive learning more difficult induces increases in R&D and education, alongside a decline in income growth. Our explanation also predicts a concurrent rise in the skill premium. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2006.12.001
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 10 (2007)
Issue (Month): 2 (April)
Pages: 276-293

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Handle: RePEc:red:issued:06-21

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Related research

Keywords: Endogenous growth; Learning; R&D; Educational attainment; Wage inequality; Technological complexity;

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References

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Citations

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Cited by:
  1. Jakub Growiec & Ingmar Schumacher, 2013. "Technological opportunity, long-run growth, and convergence," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 323-351, April.
  2. Jakub Growiec, 2011. "A Microfoundation for Normalized CES Production Functions with Factor-Augmenting Technical Change," DEGIT Conference Papers c016_013, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Pollak, Andreas, 2009. "Rising R&D Intensity and Economic Growth," MPRA Paper 49360, University Library of Munich, Germany, revised Jun 2012.
  4. Pedro Gil, 2013. "Animal spirits and the composition of innovation in a lab-equipment R&D model with transition," Journal of Economics, Springer, vol. 108(1), pages 1-33, January.

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