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Technology Revolutions and the Gestation of New Technologies

  • Chou, C.F.
  • Shy, O.
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We formalize an explanation for technology revolutions and growth cycles in a model where consumers and firms benefit from periodic changes in technology which result in the development and marketing of new generations of products. We characterize the equilibrium and analyze the effects of changing the rate of technology growth, resource endowment, and R&D and production costs on the duration of generations of products and the frequency of technology revolutions, and hence the growth cycles. Copyright 1993 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Paper provided by Stockholm - International Economic Studies in its series Papers with number 530.

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Length: 22 pages
Date of creation: 1992
Date of revision:
Handle: RePEc:fth:stocin:530
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