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Microeconomics of Technology Adoption

  • Andrew D. Foster
  • Mark R. Rosenzweig

    ()

    (Department of Economics, Brown University, Providence, Rhode Island 02912
    Department of Economics, Yale University, New Haven, Connecticut 06511)

Differences in technology levels across countries account for a large component of the differences in wages and per-capita GDP across countries worldwide. This article reviews micro studies of the adoption of new technologies and the use of inputs complementary with new technologies to shed light on the barriers to technology diffusion in low-income countries. Among the factors examined affecting decisions pertaining to technology choice and input allocations are the financial and nonfinancial returns to adoption, one's own learning and social learning, technological externalities, scale economies, schooling, credit constraints, risk and incomplete insurance, and departures from behavioral rules implied by simple models of rationality.

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File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.economics.102308.124433
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Article provided by Annual Reviews in its journal Annual Review of Economics.

Volume (Year): 2 (2010)
Issue (Month): 1 (09)
Pages: 395-424

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Handle: RePEc:anr:reveco:v:2:y:2010:p:395-424
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  1. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
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