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A Model of Technological Progress in the Microprocessor Industry

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  • Unni Pillai

Abstract

This paper develops a model of technological progress in the microprocessor industry that connects the seemingly disparate engineering and economic measures of technological progress. Technological progress in the microprocessor industry is driven by the repeated adoption of higher quality vintages of capital equipment produced by the upstream semiconductor equipment industry. The model characterizes the optimal adoption decision of a microprocessor firm and the resulting rate of technological progress. In conjunction with parameters estimated using a new dataset of the microprocessor industry, the model suggests explanations for the acceleration in technological progress during 1990-2000 and the subsequent slowdown.
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Suggested Citation

  • Unni Pillai, 2013. "A Model of Technological Progress in the Microprocessor Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 61(4), pages 877-912, December.
  • Handle: RePEc:bla:jindec:v:61:y:2013:i:4:p:877-912
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    File URL: http://hdl.handle.net/10.1111/joie.12037
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    Cited by:

    1. Gilbert Cette, 2014. "Does ICT Remain a Powerful Engine of Growth," Post-Print hal-01463929, HAL.
    2. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2015. "How Fast are Semiconductor Prices Falling?," NBER Working Papers 21074, National Bureau of Economic Research, Inc.
    3. John G. Fernald, 2015. "Productivity and Potential Output before, during, and after the Great Recession," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 1-51.
    4. Samuel Kortum & Unni Pillai, 2014. "Comment on "Productivity and Potential Output Before, During, and After the Great Recession"," NBER Chapters,in: NBER Macroeconomics Annual 2014, Volume 29, pages 52-59 National Bureau of Economic Research, Inc.
    5. Gonzalo Castex & Evgenia Kogan Dechter, 2014. "The Changing Roles of Education and Ability in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 685-710.
    6. Gilbert CETTE, 2015. "Which Role for ICTs as a Productivity Driver Over the Last Years and the Next Future?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 65-83, 4th quart.
    7. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013. "Is the Information Technology Revolution Over?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-36, Spring.
    8. Dale W. Jorgenson & Mun S. Ho & Jon D. Samuels, 2017. "Educational Attainment and the Revival of U.S. Economic Growth," NBER Chapters,in: Education, Skills, and Technical Change: Implications for Future U.S. GDP Growth National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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