IDEAS home Printed from https://ideas.repec.org/a/bla/econom/v86y2019i342p396-408.html
   My bibliography  Save this article

Note on Idea Diffusion Models with Cohort Structures

Author

Listed:
  • Santiago Caicedo

Abstract

In this note I propose two alternative frameworks to study idea diffusion models with cohort structures. Both frameworks fix the Lucas (2009) aggregation mistake while keeping the analytical tractability of the model and its insights. The frameworks differ in their assumptions on the meeting process. I study first a continuous arrival process where agents meet at each point in time, and then a more commonly used Poisson process where meeting opportunities arrive stochastically at some given Poisson rate. I generalize the growth formula in Lucas (2009) and show that both models yield the same growth rate on a balanced growth path. Moreover, I show that the continuous arrival process can be viewed as the limit of Poisson processes where the meeting rate increases but the quality of meetings decreases.

Suggested Citation

  • Santiago Caicedo, 2019. "Note on Idea Diffusion Models with Cohort Structures," Economica, London School of Economics and Political Science, vol. 86(342), pages 396-408, April.
    • Handle: RePEc:bla:econom:v:86:y:2019:i:342:p:396-408
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecca.12273
    Download Restriction: no

    References listed on IDEAS

    as
    1. Buera, Francisco J. & Oberfield, Ezra, 2015. "The Global Diffusion of Ideas," Working Paper Series WP-2016-13, Federal Reserve Bank of Chicago.
    2. Robert E. Lucas Jr. & Benjamin Moll, 2014. "Knowledge Growth and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 1-51.
    3. Akcigit, Ufuk & Caicedo Soler, Santiago & Miguelez, Ernest & Stantcheva, Stefanie & Sterzi, Valerio, 2018. "Dancing with the Stars: Innovation through Interactions," CEPR Discussion Papers 12819, C.E.P.R. Discussion Papers.
    4. Jess Benhabib & Jesse Perla & Christopher Tonetti, 2017. "Reconciling Models of Diffusion and Innovation: A Theory of the Productivity Distribution and Technology Frontier," NBER Working Papers 23095, National Bureau of Economic Research, Inc.
    5. Erzo G. J. Luttmer, 2012. "Eventually, noise and imitation implies balanced growth," Working Papers 699, Federal Reserve Bank of Minneapolis.
    6. Staley, Mark, 2011. "Growth and the diffusion of ideas," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 470-478.
    7. Francisco Buera, 2014. "The Global Diffusion of Ideas," 2014 Meeting Papers 1099, Society for Economic Dynamics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econom:v:86:y:2019:i:342:p:396-408. 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: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/lsepsuk.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.