The Dynamics of a General Purpose Technology in a Research and Assimilation Model

R. Nahuis

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Abstract

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.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages44
Volume1998-119
Publication statusPublished - 1998

Publication series

NameCentER Discussion Paper
Volume1998-119

Keywords

  • R&D spillovers
  • productivity growth
  • general purpose technology
  • wage inequality

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