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Embodied technological change, learning-by-doint and the productivity slowdown

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  • BOUCEKKINE, Raouf
  • DEL RIO, Fernando
  • LICANDRO, Omar

Abstract

The productivity slowdown faced by the US economy since the first oil shock has been associated with a rise in the decline rate of the relative price of equipment and a reduction in the rate of disembodied technical change. We build up a growth model in which learning-by-doing is the engine of both embodied and disembodied technological progress. A change in the relative efficiency of learning-by-doing from the consumption to the investment sector is shown to imply a technological reassignment consistent with the above mentioned evidence. This result derives from the interaction between the obsolescence costs inherent to embodiment and the learning-by-doing engine.
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Suggested Citation

  • BOUCEKKINE, Raouf & DEL RIO, Fernando & LICANDRO, Omar, 2003. "Embodied technological change, learning-by-doint and the productivity slowdown," LIDAM Reprints CORE 1629, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1629
    DOI: 10.1111/1467-9442.00006
    Note: In : Scandinavian Journal of Economics, 105(1), 87-97, 2003
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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