Technology Adoption and Growth

33 Pages Posted: 4 Jul 2004 Last revised: 15 Sep 2010

See all articles by Stephen L. Parente

Stephen L. Parente

University of Illinois at Urbana-Champaign - Department of Economics

Edward C. Prescott

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

Date Written: June 1991

Abstract

Technology change is modeled as the result of decisions of individuals and groups of individuals to adopt more advanced technologies. The structure is calibrated to the U.S. and postwar Japan growth experiences. Using this calibrated structure we explore how large the disparity in the effective tax rates on the returns to adopting technologies must be to account for the huge observed disparity in per capita income across countries. We find that this disparity is not implausibly large.

Suggested Citation

Parente, Stephen L. and Prescott, Edward C., Technology Adoption and Growth (June 1991). NBER Working Paper No. w3733, Available at SSRN: https://ssrn.com/abstract=310462

Stephen L. Parente (Contact Author)

University of Illinois at Urbana-Champaign - Department of Economics ( email )

410 David Kinley Hall
1407 W. Gregory
Urbana, IL 61801
United States

Edward C. Prescott

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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