On the Eonomic Purpose of General Purpose Technologies: A Combined Classical and Evolutionary Framework
General purpose technologies (GPTs) are technical breakthroughs that are able to spur growth via their pervasive use in the economy. This paper attempts to study the effects of these innovations for the economic system on an empirical and theoretical level. A structural decomposition analysis for Denmark from 1966 to 2007 tracks the impact of the current GPT, the information and communication technology (ICT), on aggregate and sectoral labor productivity growth. Findings show that the broad diffusion of ICT affected growth significantly after 2000, owing to technical change, substitution and capital deepening, and can be associated with skill-induced wage dispersion. The diffusion process of a GPT is subsequently reconstructed by an evolutionary multisectoral framework: The Sraffian input-output approach is combined with the replicator dynamics approach of evolutionary game theory. Technical unemployment, transitional wage inequality and decelerating economic growth after the appearance of a GPT can thereby be explained.
|Date of creation:||05 Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philippe Aghion, 2002. "Schumpeterian Growth Theory and the Dynamics of Income Inequality," Econometrica, Econometric Society, vol. 70(3), pages 855-882, May.
- Susanto Basu & John G. Fernald, 2006.
"Information and communications technology as a general-purpose technology: evidence from U.S industry data,"
Working Paper Series
2006-29, Federal Reserve Bank of San Francisco.
- Susanto Basu & John Fernald, 2007. "Information and Communications Technology as a General-Purpose Technology: Evidence from US Industry Data," German Economic Review, Verein für Socialpolitik, vol. 8, pages 146-173, 05.
- Susanto Basu & John G. Fernald, 2008. "Information and communications technology as a general purpose technology: evidence from U.S. industry data," Economic Review, Federal Reserve Bank of San Francisco, pages 1-15.
- Lenzen, Manfred, 2003. "Environmentally important paths, linkages and key sectors in the Australian economy," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 1-34, March.
- Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133, 1.
- Matteo Degasperi & Thomas Fredholm, 2010. "Productivity Accounting Based On Production Prices," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 267-281, 05.
- Steven G. Allen, 1996.
"Technology and the Wage Structure,"
NBER Working Papers
5534, National Bureau of Economic Research, Inc.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997.
"Computing Inequality: Have Computers Changed the Labor Market?,"
NBER Working Papers
5956, National Bureau of Economic Research, Inc.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1169-1213.
- David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
- Kurz,Heinz D. & Salvadori,Neri, 1997.
"Theory of Production,"
Cambridge University Press, number 9780521588676, 1.
- Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
- Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 33-60.
- Helpman, E. & Trajtenberg, M., 1996.
"Diffusion of General Purpose Technologies,"
24-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002.
"ICT clusters in Europe The great central banana and the small Nordic potato,"
Information Economics and Policy,
Elsevier, vol. 14(2), pages 145-165, June.
- Koski, Heli & Rouvinen, Petri & Yla-Anttila, Pekka, 2001. "ICT Clusters in Europe. The Great Central Banana and the Small Nordic Potato," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023, 1.
- Jorgenson, D.W. & Timmer, Marcel, 2010.
"Structural Change in Advanced Nations: A New Set of Stylised Facts,"
GGDC Research Memorandum
GD-115, Groningen Growth and Development Centre, University of Groningen.
- Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, 03.
- Richard Nahuis, 2004. "Learning for Innovation and the Skill Premium," Journal of Economics, Springer, vol. 83(2), pages 151-179, November.
- Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895, July.
- Dale Jorgenson & Mun Ho & Jon Samuels & Kevin Stiroh, 2007. "Industry Origins of the American Productivity Resurgence," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 229-252.
- Yang, Ling & Lahr, Michael L., 2008. "Labor Productivity Differences in China 1987-1997: An Interregional Decomposition Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 38(3), pages 319-41.
- Aghion, Philippe, 2002. "Schumpeterian Growth Theory and the Dynamics of Income Inequality," Scholarly Articles 3350067, Harvard University Department of Economics.
- Muge Adalet McGowan & Stéphanie Jamet, 2012. "Sluggish Productivity Growth in Denmark: The Usual Suspects?," OECD Economics Department Working Papers 975, OECD Publishing.
- Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-62, May.
- Yang, Ling & Lahr, Michael L., 2010. "Sources of Chinese labor productivity growth: A structural decomposition analysis, 1987-2005," China Economic Review, Elsevier, vol. 21(4), pages 557-570, December.
- Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 285-326.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:45964. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.