Microeconomics of Technology Adoption

Posted: 18 Oct 2010

See all articles by Andrew D. Foster

Andrew D. Foster

Brown University - Department of Economics; Brown University - Watson Institute for International and Public Affairs

Mark R. Rosenzweig

Yale University - Economic Growth Center; Yale University - Cowles Foundation

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Date Written: March 2010


Differences in technology levels across countries account for a large component of the differences in wages and per-capita GDP across countries worldwide. This article reviews micro studies of the adoption of new technologies and the use of inputs complementary with new technologies to shed light on the barriers to technology diffusion in low-income countries. Among the factors examined affecting decisions pertaining to technology choice and input allocations are the financial and nonfinancial returns to adoption, one's own learning and social learning, technological externalities, scale economies, schooling, credit constraints, risk and incomplete insurance, and departures from behavioral rules implied by simple models of rationality.

Suggested Citation

Foster, Andrew D. and Rosenzweig, Mark Richard, Microeconomics of Technology Adoption (March 2010). Annual Review of Economics, Vol. 2, pp. 395-424, 2010, Available at SSRN: https://ssrn.com/abstract=1693048 or http://dx.doi.org/10.1146/annurev.economics.102308.124433

Andrew D. Foster (Contact Author)

Brown University - Department of Economics ( email )

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Brown University - Watson Institute for International and Public Affairs ( email )

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Mark Richard Rosenzweig

Yale University - Economic Growth Center ( email )

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Yale University - Cowles Foundation

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