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Rosenberg's "Learning by Using" and Technology Diffusion

  • Toshihiko Mukoyama

    ()

    (Department of Economics, Concordia University)

This paper formulates Rosenberg's (1982) "learning by using" as a stochastic process. The producer of machines learns from the experience of users. Due to this learning, the quality of machines improves over time. It turns out that the process of this improvement approximately takes an exponential form. This improvement process, combined with the growth of demand due to the improvement, can produce an S-shape diffusion curve of machines. Strong demand and advancement of communication technology increase the diffusion speed. The distributional property of the stochastic process and the implications for inequality across machine users are also explored.

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File URL: http://economics.concordia.ca/documents/working_papers/05003tm.pdf
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Paper provided by Concordia University, Department of Economics in its series Working Papers with number 05003.

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Length: 38 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:crd:wpaper:05003
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  1. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  2. Jovanovic, Boyan & Lach, Saul, 1989. "Entry, Exit, and Diffusion with Learning by Doing," American Economic Review, American Economic Association, vol. 79(4), pages 690-99, September.
  3. Hall, Bronwyn H. & Khan, Beethika, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series qt3wg4p528, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  4. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May.
  5. Chari, V V & Hopenhayn, Hugo, 1991. "Vintage Human Capital, Growth, and the Diffusion of New Technology," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1142-65, December.
  6. Georg GÖTZ, 1996. "Monopolistic Competition and the Diffusion of New Technology," Vienna Economics Papers vie9610, University of Vienna, Department of Economics.
  7. Stephen L. Parente, 2000. "Learning-by-Using and the Switch to Better Machines," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(4), pages 675-703, October.
  8. Griliches, Zvi & Regev, Haim, 1995. "Firm productivity in Israeli industry 1979-1988," Journal of Econometrics, Elsevier, vol. 65(1), pages 175-203, January.
  9. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-83, August.
  10. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
  11. Christine Macleod, 1992. "Strategies for innovation: the diffusion of new technology in nineteenth-century British industry," Economic History Review, Economic History Society, vol. 45(2), pages 285-307, 05.
  12. Young, Alwyn, 1993. "Invention and Bounded Learning by Doing," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 443-72, June.
  13. Paul S. Adler & Kim B. Clark, 1991. "Behind the Learning Curve: A Sketch of the Learning Process," Management Science, INFORMS, vol. 37(3), pages 267-281, March.
  14. Beckmann, Martin J., 1977. "Management production functions and the theory of the firm," Journal of Economic Theory, Elsevier, vol. 14(1), pages 1-18, February.
  15. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  16. Parente Stephen L., 1994. "Technology Adoption, Learning-by-Doing, and Economic Growth," Journal of Economic Theory, Elsevier, vol. 63(2), pages 346-369, August.
  17. Toshihiko Mukoyama, 2004. "Diffusion and Innovation of New Technologies under Skill Heterogeneity," Journal of Economic Growth, Springer, vol. 9(4), pages 451-479, December.
  18. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
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