Advanced Search
MyIDEAS: Login to save this article or follow this journal

Learning-by-Using and the Switch to Better Machines

Contents:

Author Info

  • 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)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1006/redy.2000.0095
File Function: Full text
Download Restriction: Access to full texts is restricted to ScienceDirect subscribers and ScienceDirect institutional members. See http://www.sciencedirect.com/ for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

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

as in new window
Handle: RePEc:red:issued:v:3:y:2000:i:4:p:675-703

Contact details of provider:
Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101
Fax: 1-314-444-8731
Email:
Web page: http://www.EconomicDynamics.org/review.htm
More information through EDIRC

Order Information:
Email:
Web: http://www.EconomicDynamics.org/RED17.htm

Related research

Keywords:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. repec:fth:starer:9816 is not listed on IDEAS
  2. Russell Cooper & John Haltiwanger, 1990. "The Aggregate Implications of Machine Replacement: Theory and Evidence," NBER Working Papers 3552, National Bureau of Economic Research, Inc.
  3. Greenwood, J. & Yorukoglu, M., 1996. "1974," RCER Working Papers, University of Rochester - Center for Economic Research (RCER) 429, University of Rochester - Center for Economic Research (RCER).
  4. Michael Gort & Jeremy Greenwood & Peter Rupert, 1998. "Measuring the rate of technological progress in structures," Working Paper, Federal Reserve Bank of Cleveland 9806, Federal Reserve Bank of Cleveland.
  5. Mark E. Doms & Timothy Dunne, 1998. "Capital Adjustment Patterns in Manufacturing Plants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(2), pages 409-429, April.
  6. Nancy L Stokey, 1986. "Learning-by-Doing and the Introduction of New Goods," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 699, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised May 1987.
  7. Boyan Jovanovic, 1998. "Vintage Capital and Inequality," NBER Working Papers 6416, National Bureau of Economic Research, Inc.
  8. Argote, L. & Epple, D., 1990. "Learning Curves In Manufacturing," GSIA Working Papers, Carnegie Mellon University, Tepper School of Business 89-90-02, Carnegie Mellon University, Tepper School of Business.
  9. Jeffrey R. Campbell, 1997. "Entry, Exit, Embodied Technology, and Business Cycles," NBER Working Papers 5955, National Bureau of Economic Research, Inc.
  10. Hendricks, Lutz, 2000. "Equipment investment and growth in developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 61(2), pages 335-364, April.
  11. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 19(3), pages 1029-64, September.
  12. Charles R. Hulten, 1992. "Growth Accounting When Technical Change is Embodied in Capital," NBER Working Papers 3971, National Bureau of Economic Research, Inc.
  13. Robert M. Coen, 1980. "Alternative Measures of Capital and Its Rate of Return in United States Manufacturing," NBER Chapters, National Bureau of Economic Research, Inc, in: The Measurement of Capital, pages 121-152 National Bureau of Economic Research, Inc.
  14. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 369-405, May.
  15. Jeffrey R. Campbell, 1997. "Computational Appendix to Entry, Exit, Embodied Technology, and Business Cycles," Technical Appendices, Review of Economic Dynamics campbell98, Review of Economic Dynamics.
  16. Austan Goolsbee, 1998. "The Business Cycle, Financial Performance, and the Retirement of Capital Goods," NBER Working Papers 6392, National Bureau of Economic Research, Inc.
  17. Acemoglu, Daron & Zilibotti, Fabrizio, 1998. "Productivity Differences," Seminar Papers, Stockholm University, Institute for International Economic Studies 660, Stockholm University, Institute for International Economic Studies.
  18. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number gord90-1.
  19. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(4), pages 561-83, August.
  20. Andres Rodriguez-Clare, 1996. "The role of trade in technology diffusion," Discussion Paper / Institute for Empirical Macroeconomics, Federal Reserve Bank of Minneapolis 114, Federal Reserve Bank of Minneapolis.
  21. Hulten, Charles R, 1992. "Growth Accounting When Technical Change Is Embodied in Capital," American Economic Review, American Economic Association, American Economic Association, vol. 82(4), pages 964-80, September.
  22. Parente Stephen L., 1994. "Technology Adoption, Learning-by-Doing, and Economic Growth," Journal of Economic Theory, Elsevier, Elsevier, vol. 63(2), pages 346-369, August.
  23. Boyan Jovanovic & Rafael Rob, 1997. "Solow vs. Solow: Machine Prices and Development," NBER Working Papers 5871, National Bureau of Economic Research, Inc.
  24. repec:fth:starer:98-16 is not listed on IDEAS
  25. Jones, Charles I., 1994. "Economic growth and the relative price of capital," Journal of Monetary Economics, Elsevier, Elsevier, vol. 34(3), pages 359-382, December.
  26. Huggett, Mark & Ospina, Sandra, 2001. "Does productivity growth fall after the adoption of new technology?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 48(1), pages 173-195, August.
  27. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Francesco Caselli, 2005. "Accounting for Cross-Country Income Differences," CEP Discussion Papers, Centre for Economic Performance, LSE dp0667, Centre for Economic Performance, LSE.
  2. Alpanda, Sami & Peralta-Alva, Adrian, 2007. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," MPRA Paper 5896, University Library of Munich, Germany.
  3. 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).
  4. Mateos-Planas, Xavier, 2000. "Technology adoption with finite horizons," Discussion Paper Series In Economics And Econometrics, Economics Division, School of Social Sciences, University of Southampton 0033, Economics Division, School of Social Sciences, University of Southampton.
  5. Mateos-Planas, Xavier, 2000. "Schooling and distortions in a vintage capital model," Discussion Paper Series In Economics And Econometrics, Economics Division, School of Social Sciences, University of Southampton 0030, Economics Division, School of Social Sciences, University of Southampton.
  6. Francesco Caselli, 2005. "Accounting for cross-country income differences," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 3567, London School of Economics and Political Science, LSE Library.
  7. repec:fth:sotoec:0030 is not listed on IDEAS
  8. Adrian Peralta-Alva (Presenter) & Sami Alpanda, 2004. "Oil crisis, Energy Saving Technological Change, and the Stock Market Collapse of 1974," Econometric Society 2004 Latin American Meetings, Econometric Society 250, Econometric Society.
  9. Braguinsky, Serguey & Rose, David C., 2009. "Competition, cooperation, and the neighboring farmer effect," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 72(1), pages 361-376, October.
  10. MUKOYAMA, Toshihiko, 2005. "Rosenberg's "Learning by Using" and Technology Diffusion," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 21-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:red:issued:v:3:y:2000:i:4:p:675-703. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.