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Technological Complexity and Economic Growth

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  • Mihaela Pintea

    ()
    (Department of Economics, Florida International University)

  • Peter Thompson

    ()
    (Department of Economics, Florida International University)

Abstract

The last fifty years have witnessed 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.

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File URL: http://casgroup.fiu.edu/pages/docs/2247/1275232224_05-02.pdf
File Function: Revised version, 2005
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0502.

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Length: 24 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:fiu:wpaper:0502

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Postal: Miami, FL 33199
Phone: (305) 348-2316
Fax: (305) 348-1524
Web page: http://casgroup.fiu.edu/Economics/
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Keywords: Endogenous growth; learning; R&D; educational attainment; wage inequality; technological complexity;

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Cited by:
  1. Jakub Growiec, 2011. "A Microfoundation for Normalized CES Production Functions with Factor-Augmenting Technical Change," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c016_013, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Pollak, Andreas, 2009. "Rising R&D Intensity and Economic Growth," MPRA Paper 49360, University Library of Munich, Germany, revised Jun 2012.
  3. Pedro Gil, 2013. "Animal spirits and the composition of innovation in a lab-equipment R&D model with transition," Journal of Economics, Springer, Springer, vol. 108(1), pages 1-33, January.
  4. Jakub, GROWIEC & Ingmar, SCHUMACHER, 2007. "Technological opportunity, long-run growth and convergence," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2007034, Université catholique de Louvain, Département des Sciences Economiques.

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