Intergenerational Bargaining in Technology Adoption
AbstractI study the choice of technology adoption in an environment where human capital is transmitted from the old to the young generation, but the young generation can opt out for a new technology. The adoption and matching decisions are made in a sequential intergenerational bargaining. Since technology adoption benefits future generations who do not participate in the bargaining, there is an inherent bias toward preserving the current technology. The main result is that economic integration (i.e., the sharing of frontier technology among countries) promotes growth while political integration (i.e., the merging of countries into a single bargaining) promotes stagnation.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp414.
Date of creation: Aug 2010
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Technology adoption; growth; stagnation; bargaining; generation; human capital; economic integration; political fragmentation.;
Other versions of this item:
- Byeongju Jeong, 2007. "Intergenerational Bargaining in Technology Adoption," 2007 Meeting Papers 604, Society for Economic Dynamics.
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
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