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Long-Run Growth and the Evolution of Technological Knowledge

Author

Listed:
  • Hendrik Hakenes

    (Max Planck Institute for Research on Collective Goods, Bonn)

  • Andreas Irmen

    (University of Heidelberg, Department of Economics)

Abstract

The long-run evolution of per-capita income exhibits a structural break often associated with the Industrial Revolution. We follow Mokyr (2002) and embed the idea that this structural break reflects a regime switch in the evolution of technological knowledge into a dynamic framework, using Airy differential equations to describe this evolution. We show that under a non-monotonous income-population equation, the economy evolves from a Malthusian to a Post-Malthusian Regime, with rising per-capita income and a growing population. The switch is brought about by an acceleration in the growth of technological knowledge. The demographic transition marks the switch into the Modern Growth Regime, with higher levels of per-capita income and declining population growth.

Suggested Citation

  • Hendrik Hakenes & Andreas Irmen, 2007. "Long-Run Growth and the Evolution of Technological Knowledge," Working Papers 0438, University of Heidelberg, Department of Economics, revised Mar 2007.
  • Handle: RePEc:awi:wpaper:0438
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    File URL: http://www.uni-heidelberg.de/md/awi/forschung/dp438.pdf
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    References listed on IDEAS

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    1. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
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    Cited by:

    1. Growiec, Jakub, 2010. "Knife-edge conditions in the modeling of long-run growth regularities," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 1143-1154, December.

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    More about this item

    Keywords

    crisis Industrial Revolution; Technological Change; Malthus; Demographic Transition;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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