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Microeconomic Foundation of the S-Curve Hypothesis: A Stochastic Technological Diffusion Model

In: Economic Growth And Transition Econometric Analysis of Lim's S-Curve Hypothesis

Author

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  • Hui Ying Sng

    (Nanyang Technological University, Singapore)

Abstract

The following sections are included:IntroductionBarro and Sala-i-Martin's Technological Diffusion ModelDescriptive properties of the modelInadequacy of the model in describing economic developmentInterpretation and Enhancement of the Productivity ParameterProductivity parameter and EGOIN theoryEndogeneity of productivity parameter ARole of chance in the productivity parameterFormulation of the productivity parameterThe Stochastic Technological Diffusion ModelSetup of the modelInnovation in country 1Imitation in country 2Imitators of intermediate goods and producers of final goodsRepresentative consumerOutput of the economyGrowth rate of N2Expected growth rate of Y2The steady stateTechnological leadershipResultConclusion

Suggested Citation

  • Hui Ying Sng, 2010. "Microeconomic Foundation of the S-Curve Hypothesis: A Stochastic Technological Diffusion Model," World Scientific Book Chapters, in: Economic Growth And Transition Econometric Analysis of Lim's S-Curve Hypothesis, chapter 2, pages 17-45, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814291842_0002
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