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Learning-by-Using and the Switch to Better Machines

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  • Stephen L. Parente

    (University of Illinois, Urbana-Champaign)

Abstract

In an attempt to account for the huge observed disparity in international incomes, several recent papers study models in the spirit of Solow (1960) where the adoptions of better technologies require investments in new equipment. This paper continues this line of research. It describes an economy in which firms install more productive machines and subsequent to these adoptions, learn how to use those machines. In contrast to these other papers, this one does not predict that firms always adopt the frontier technology whenever they switch technologies. In this model both the upper and lower supports of the distribution of operated technologies may differ between economies that differ in policy. Consequently, this model can generate larger differences in international incomes than these other models. These differences are still small relative to the data, however. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1006/redy.2000.0095
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 3 (2000)
Issue (Month): 4 (October)
Pages: 675-703

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Handle: RePEc:red:issued:v:3:y:2000:i:4:p:675-703

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Citations

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Cited by:
  1. Mukoyama, Toshihiko, 2006. "Rosenberg's "learning by using" and technology diffusion," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 123-144, September.
  2. Mateos-Planas, Xavier, 2000. "Technology adoption with finite horizons," Discussion Paper Series In Economics And Econometrics 0033, Economics Division, School of Social Sciences, University of Southampton.
  3. Francesco Caselli, 2004. "Accounting for Cross-Country Income Differences," NBER Working Papers 10828, National Bureau of Economic Research, Inc.
  4. repec:fth:sotoec:0030 is not listed on IDEAS
  5. Adrian Peralta Alva & Sami Alpanda, 2003. "Oil crisis, Energy Saving Technological Change, and the Stock Market Collapse of 1974," Macroeconomics 0307007, EconWPA.
  6. Sami Alpanda & Adrian Peralta-Alva, 2008. "Oil crisis, energy-saving technological change and the stock market crash of 1973-74," Working Papers 2008-019, Federal Reserve Bank of St. Louis.
  7. Xavier Mateos-Planas, 2001. "Schooling and Distortions in a Vintage Capital Model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(1), pages 127-158, January.
  8. Braguinsky, Serguey & Rose, David C., 2009. "Competition, cooperation, and the neighboring farmer effect," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 361-376, October.
  9. Francesco Caselli, 2005. "Accounting for cross-country income differences," LSE Research Online Documents on Economics 3567, London School of Economics and Political Science, LSE Library.
  10. Pessoa, Samuel de Abreu & Rob, Rafael, 2002. "Vintage Capital, Distortions and Development," Economics Working Papers (Ensaios Economicos da EPGE) 447, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).

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