Time-to-build obsolescence and the technological paradox
AbstractThe paper focusses on the technological paradox. To analyze the possible temporary negative e ect of an innovation, we make use of a ow representation of production. Our aim is to show that such phenomenon can be justi ed by a simple property of the production process: in real time costs strictly come before proceeds.Moving in the same direction of Amendola (1974), we analyze the obsolescence effect induced by a rise in the interest rate. Furthermore, we analyze the role of capital market stickiness on the timing of the technological paradox and on the distribution of the obsolescence e ect among the different stages of a vertical integrated production system.
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Bibliographic InfoPaper provided by Doctoral School of Economics, Sapienza University of Rome in its series Working Papers with number 6.
Length: 21 pages
Date of creation: 2010
Date of revision: 2010
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Technological paradox; technology adoption; time-to-build; obsolescence.;
Other versions of this item:
- Patriarca, Fabrizio, 2012. "Time-to-build, obsolescence and the technological paradox," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 1-10.
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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