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Growth Cycles with Technology Shifts and Externalities

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Author Info
Erikson, C.
Lindh, T.

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Abstract

This paper investigates a model with tachnological cycles induced by shifts in technologies. The key feature is that technological development occurs partly by discrete replacement of obsolete technologies, partly by continuous innovation of components for a pervasive general purpose technology. The technological system isexplicitly modeled as a complex interrelation between distinct constituents. By allowing for positive technological externalities, closed from analytical solutions for different phases can be obtained, the timing of technology shifts endogenized and a simple characterization of stationary cycles is achieved. This contributes to realism and analytical tractability. The model is capable of reproducing features of e. g. the shift to computer technology.

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Publisher Info
Paper provided by Uppsala - Working Paper Series in its series Papers with number 1997-15.

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Length: 29 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:uppaal:1997-15

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Related research
Keywords: ECONOMIC GROWTH ; BUSINESS CYCLES ; TECHNOLOGY;

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Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

Cited by:
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  1. Nahuis, R., 1998. "The dynamics of a general purpose technology in a research and assimilation model," Discussion Paper 119, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Daniel Schiess & Roger Wehrli, 2008. "The Calm Before the Storm? - Anticipating the Arrival of General Purpose Technologies," Economics working paper series 08/81, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
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