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Learning by Doing Author info | Abstract | Publisher info | Download info | Related research | Statistics Peter Thompson () (Department of Economics, Florida International University)
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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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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 2008Date of revision:
Handle: RePEc:fiu:wpaper:0806Contact details of provider: Postal: Miami, FL 33199 Phone: (305) 348-2316 Fax: (305) 348-1524 Web page: http://www.fiu.edu/orgs/economics/ More information through EDIRC
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Keywords: Learning by doing ; learning curves ; passive learning ; progress curves ; cost-quantity relationship ; knowledge spillovers ; forgetting ; endogenous growth ; technological change. ; Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure O3 - Economic Development, Technological Change, and Growth - - Technological Change
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