IDEAS home Printed from https://ideas.repec.org/a/bpj/bejmac/vtopics.5y2005i1n22.html
   My bibliography  Save this article

Vertical Diversity, Communication Gap and Equilibrium Growth

Author

Listed:
  • Das Satya P

    () (Indian Statistical Institute, Delhi)

Abstract

This paper examines the effect of vertical diversity in workers' skill on the long-run growth rate of an economy. It uses a two-sector model where the technology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and Maggi's (2000) model to a framework of growth, it shows first that diversity is conducive to growth. As the main innovation, a notion of communication gap is introduced among workers. It is shown that if vertical diversity is sufficiently high relative to the communication gap, the growth rate may not increase with diversity; there may be an inverse-U shaped relationship.

Suggested Citation

  • Das Satya P, 2005. "Vertical Diversity, Communication Gap and Equilibrium Growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-42, November.
  • Handle: RePEc:bpj:bejmac:v:topics.5:y:2005:i:1:n:22
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/bejm.2005.5.1/bejm.2005.5.1.1334/bejm.2005.5.1.1334.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2014. "Free Trade and Economic Growth," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 69-76, June.
    2. repec:bla:ausecp:v:56:y:2017:i:1:p:59-71 is not listed on IDEAS
    3. Cheng-Te Lee & Shang-Fen Wu & Chen Fang, 2013. "Growth and the Enlargement of a Common Market," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(6), pages 1-3, December.

    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:bpj:bejmac:v:topics.5:y:2005:i:1:n:22. 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: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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.

    We have no references for this item. You can help adding them by using 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.