Technological Change and the Scale of Production
Many manufacturing industries, including the computer industry, have seen large increases in productivity grwoth rates and have experienced a reduction in average establishment size. A vintage capital model is introduced which can account for this fact. It is shown that a rise in the rate of technological change decreases average plant size, that is, the level of innovation affects fim soze. Smaller plants are not more innovative, as has been suggested, but indutries with more innovation, as measured by productivity growth, have smaller plants. (Copyright: Elsevier)
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Volume (Year): 5 (2002)
Issue (Month): 2 (April)
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"Downsizing and productivity growth: myth or reality?,"
Finance and Economics Discussion Series
94-7, Board of Governors of the Federal Reserve System (U.S.).
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- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995. "Long-Run Implications of Investment-Specific Technological Change," UWO Department of Economics Working Papers 9510, University of Western Ontario, Department of Economics.
- Greenwood, Jeremy & Yorukoglu, Mehmet, 1997.
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Elsevier, vol. 46(1), pages 49-95, June.
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"Learning by Doing and the Choice of Technology,"
96-25, C.V. Starr Center for Applied Economics, New York University.
- Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, June.
- Matthew F. Mitchell, 2000. "The scale of production in technological revolutions," Staff Report 269, Federal Reserve Bank of Minneapolis.
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