The Dynamics of a General Purpose Technology in a Research and Assimilation Model
Richard Nahuis (deceased)
CPB Netherlands Bureau of Economic Policy Analysis (Deceased)
Tilburg University, CentER Working Paper No. 1998-119
Where is the productivity growth from the IT revolution? Why did the skill premium rise sharply in the early eighties? Were these phenomena related? This paper examines these questions in a general equilibrium model of growth. Technological progress in firms is driven by research aimed at improving the production technology and by assimilation of ideas or principles present outside the firm. A new general purpose technology like the IT revolution generates an initial slowdown in economic growth and an increase in inequality.
JEL Classification: O31, O33, O41, J31, F43working papers series
Date posted: September 13, 1999
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