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Technology Adoption and Growth

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  • Stephen L. Parente
  • Edward C. Prescott

Abstract

Technology change is modeled as the result of decisions of individuals and groups of individuals to adopt more advanced technologies. The structure is calibrated to the U.S. and postwar Japan growth experiences. Using this calibrated structure we explore how large the disparity in the effective tax rates on the returns to adopting technologies must be to account for the huge observed disparity in per capita income across countries. We find that this disparity is not implausibly large.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3733.

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Date of creation: Jun 1991
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Publication status: published as Revised version "Barriers to Technology Adoption and Development" Journal of Public Economics, April 1994, pp. 298-321
Handle: RePEc:nbr:nberwo:3733

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  1. Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992. "In search of scale effects in trade and growth," Journal of Economic Theory, Elsevier, Elsevier, vol. 58(2), pages 377-409, December.
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  18. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  19. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
  20. Michele Boldrin & Jose A. Scheinkman, 1988. "Learning-By-Doing, International Trade and Growth: A Note," UCLA Economics Working Papers, UCLA Department of Economics 462, UCLA Department of Economics.
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