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Learning by Doing

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  • Peter Thompson

    ()
    (Department of Economics, Florida International University)

Abstract

This paper reviews the theoretical and empirical literature on learning by doing. Many of the distinctive theoretical implications of learning by doing have been derived under the assumption that the cost-quantity relationships observed in numerous empirical studies are largely the result of passive learning, and some further require that passive learning is unbounded. The empirical literature raises doubts about both assumptions. When observed cost-quantity relationships indicate sustained productivity growth, factors other than passive learning are generally at work. When passive learning is the dominant factor, productivity growth is invariably bounded. Thus, empirically-relevant theories incorporating learning by doing are hybrid models in which passive learning coexists with other sources of growth. But in such models, many of the distinctive implications of passive learning become unimportant. Moreover, passive learning is often an inessential component of long-run growth; to the contrary, too much learning can lead to stagnation.

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File URL: http://casgroup.fiu.edu/pages/docs/2249/1275227748_08-06.pdf
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0806.

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Length: 73 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:fiu:wpaper:0806

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Keywords: Learning by doing; learning curves; passive learning; progress curves; cost-quantity relationship; knowledge spillovers; forgetting; endogenous growth; technological change.;

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Cited by:
  1. Jing Chen, 2009. "Selection and Serial Entrepreneurs," Working Papers 0913, Florida International University, Department of Economics.
  2. Della Seta, Marco & Gryglewicz, Sebastian & Kort, Peter M., 2012. "Optimal investment in learning-curve technologies," Journal of Economic Dynamics and Control, Elsevier, vol. 36(10), pages 1462-1476.
  3. Martin Gaynor & Robert J. Town, 2011. "Competition in Health Care Markets," NBER Working Papers 17208, National Bureau of Economic Research, Inc.
  4. Eric J. Bartelsman, 2010. "Searching for the sources of productivity from macro to micro and back," Industrial and Corporate Change, Oxford University Press, vol. 19(6), pages 1891-1917, December.
  5. Gilberto SERAVALLI, 2011. "Conflict, Contract, Leadership and Innovation: An Interdisciplinary View," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(6), pages 48, October.

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