Advanced Search
MyIDEAS: Login to save this paper or follow this series

Technology Structure and Skill Structure: Costly Investment and Complementarity Effects Quantification

Contents:

Author Info

  • Elena Sochirca

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

  • Pedro Mazeda Gil

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

  • Oscar Afonso

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

Abstract

Based on an extended model of endogenous directed technical change and on cross-country data, we identify and quantify the long-run link between: (i) the technology structure (high- versus low-tech sectors) and the skill structure (high- versus low-skilled workers), by considering an explicit role for the (potential) gross complementarity between technological goods; (ii) the Tobin-q and the technology characteristics of the firms through their impact on economic growth. Our estimation and calibration exercise suggests the existence of a moderate degree of gross complementarity and of an elastic relationship between the Tobin-q and key technology parameters.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.fep.up.pt/investigacao/workingpapers/wp478.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 478.

as in new window
Length: 24 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:por:fepwps:478

Contact details of provider:
Postal: Rua Dr. Roberto Frias, 4200 PORTO
Phone: 351-22-5571100
Fax: 351-22-5505050
Email:
Web page: http://www.fep.up.pt/
More information through EDIRC

Related research

Keywords: high-tech; low-tech; skills; complementarity; Tobin-q; technological-knowledge bias;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. George Evans & Seppo Honkapohja & Paul Romer, 1996. "Growth Cycles," NBER Working Papers 5659, National Bureau of Economic Research, Inc.
  2. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  3. Basu, Susanto & Fernald, John G., 2002. "Aggregate productivity and aggregate technology," European Economic Review, Elsevier, Elsevier, vol. 46(6), pages 963-991, June.
  4. Hayashi, Fumio, 1982. "Tobin's Marginal q and Average q: A Neoclassical Interpretation," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 213-24, January.
  5. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(2), pages 563-606, May.
  6. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
  7. Charles I. Jones & John C. Williams, 1999. "Too Much of a Good Thing? The Economics of Investment in R&D"," Working Papers, Stanford University, Department of Economics 99015, Stanford University, Department of Economics.
  8. Antonio Ciccone & Kiminori Matsuyama, 1993. "Start-Up Costs and Pecuniary Externalities as Barriers to Economic Development," NBER Working Papers 4363, National Bureau of Economic Research, Inc.
  9. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 1(1), pages 15-29, February.
  10. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 33(2), pages 701-729, June.
  11. Howitt, Peter & Aghion, Philippe, 1998. " Capital Accumulation and Innovation as Complementary Factors in Long-Run Growth," Journal of Economic Growth, Springer, Springer, vol. 3(2), pages 111-30, June.
  12. Guido Cozzi & Giammario Impullitti, 2010. "Government Spending Composition, Technical Change, and Wage Inequality," Journal of the European Economic Association, MIT Press, MIT Press, vol. 8(6), pages 1325-1358, December.
  13. Angrist, Joshua D, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," American Economic Review, American Economic Association, American Economic Association, vol. 85(5), pages 1065-87, December.
  14. Chan, Su Han & Martin, John D. & Kensinger, John W., 1990. "Corporate research and development expenditures and share value," Journal of Financial Economics, Elsevier, Elsevier, vol. 26(2), pages 255-276, August.
  15. Norrbin, S.C., 1993. "The Relation Between Price and Marginal Cost in U.S. Industry: A Contradiction," Working Papers, Department of Economics, Florida State University 1993_05_04, Department of Economics, Florida State University.
  16. Holger Strulik, 2005. "Too Much of a Good Thing? The Quantitative Economics of R&D–driven Growth Revisited," Discussion Papers 05-26, University of Copenhagen. Department of Economics.
  17. Benavie, Arthur & Grinols, Earl & Turnovsky, Stephen J., 1996. "Adjustment costs and investment in a stochastic endogenous growth model," Journal of Monetary Economics, Elsevier, Elsevier, vol. 38(1), pages 77-100, August.
  18. Dirk Pilat & Agnès Cimper & Karsten Bjerring Olsen & Colin Webb, 2006. "The Changing Nature of Manufacturing in OECD Economies," OECD Science, Technology and Industry Working Papers 2006/9, OECD Publishing.
  19. Peter Howitt, 1999. "Steady Endogenous Growth with Population and R & D Inputs Growing," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 107(4), pages 715-730, August.
  20. Pedro Rui Mazeda Gil & Paulo Brito & Óscar Afonso, 2010. "Growth and Firm Dynamics with Horizontal and Vertical R&D," FEP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 356, Universidade do Porto, Faculdade de Economia do Porto.
  21. Pedro Mazeda Gil & Oscar Afonso & Paulo Brito, 2012. "Skill Structure and Technology Structure: Innovation and Growth Implications," FEP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 470, Universidade do Porto, Faculdade de Economia do Porto.
  22. Oscar Afonso, 2006. "Skill-biased technological knowledge without scale effects," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(1), pages 13-21.
  23. Maria Thompson, 2008. "Complementarities and costly investment in a growth model," Journal of Economics, Springer, Springer, vol. 94(3), pages 231-240, September.
  24. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ana P. Borges & Didier Laussel & João Correia-da-Silva, 2013. "Multidimensional screening with complementary activities: regulating a monopolist with unknown cost and unknown preference for empire-building," FEP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 486, Universidade do Porto, Faculdade de Economia do Porto.
  2. João Correia-da-Silva & Joana Pinho & Hélder Vasconcelos, 2013. "Cartel stability and profits under different reactions to entry in markets with growing demand," FEP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 487, Universidade do Porto, Faculdade de Economia do Porto.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:por:fepwps:478. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.