Quantifying embodied technological change

Sakellaris, Plutarchos; Wilson, Daniel J.

doi:10.1016/s1094-2025(03)00052-8

Cited by 83 publications

(45 citation statements)

References 35 publications

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“…29 It is also well-known that the speed of convergence in a growth model generally tends to slow down as the desire for consumption smoothing, θ, rises and the population growth rate falls, respectively. 30 As expected, this holds in the present framework as well. At the same time, as documented in Appendix G, the qualitative patterns displayed by the graphs above go through for alternative values of θ and n, respectively.…”

Section: Other Aspectssupporting

confidence: 87%

“…Combining Lemma D1 and D2 we have that when (A1) and (A2) hold together with λ > 0 or (β > 0 and θ ̸ = α), then generically C 2i = c 2 v 2 i ̸ = 0, i = 1, 2, 3. In the light of (30) it follows that in this case the same asymptotic speed of convergence, −η 2 , applies to all three variables in the dynamic system. That this will also be the asymptotic speed of convergence of y t /y * t follows by (31).…”

Section: Local Existence and Uniqueness Of A Convergent Solutionmentioning

confidence: 92%

“…31 Moreover, both qualitatively and quantitatively similar results are obtained when the household sector is instead described within a Blanchard-Yaari type of overlapping generations framework. 29 See also Table C in Appendix G. 30 See, e.g., Barro and Sala-i-Martin (2004, p. 112) and Turnovsky (2002). 31 Sensitivity analysis w.r.t.…”

Section: Other Aspectsmentioning

confidence: 99%

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Embodied learning by investing and speed of convergence

Groth

Wendner

2014

Journal of Macroeconomics

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Abstract. Based on a dynamic general equilibrium model we study how the composition of technical progress, along three dimensions, affects transitional dynamics, with an emphasis on the speed of convergence. The three dimensions are, first, the degree to which technical change is embodied, second, the extent to which an endogenous source, learning, drives productivity advances, and, third, the extent to which the vehicle of learning is gross investment rather than net investment. The analysis shows that the speed of convergence, both ultimately and in a finite distance from the steady state, depends strongly and negatively on the importance of learning in the growth engine and on gross investment being the vehicle of learning rather than net investment. In contrast to a presumption implied by "old growth theory", a rising degree of embodiment in the wake of the computer revolution is not likely to raise the speed of convergence when learning by investing is the driving force of productivity increases.

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Section: Other Aspectssupporting

confidence: 87%

Section: Local Existence and Uniqueness Of A Convergent Solutionmentioning

confidence: 92%

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Embodied learning by investing and speed of convergence

Groth

Wendner

2014

Journal of Macroeconomics

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“…Other studies have shown that quality upgrading in advanced economies may have the effect of leaving less developed countries out of international markets (e.g. Murphy and Shleifer, 1997;Fan, 2004 (Greenwood et al,1997;Cummins and Violante, 2002;Sakellaris and Wilson, 2004). In light of these findings, the transmission of sustained growth through the terms of trade seems more than just a theoretical possibility.…”

Section: Introductionmentioning

confidence: 95%

Quality of Imports Relative to Exports, and the Transmission of Sustained Growth through the Terms of Trade

Álvarez‐Albelo

Pigem-Vigo

2007

International Economic Journal

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This paper shows that an economy can import sustained growth from abroad, in spite of not possessing mechanisms to absorb foreign technical progress. To do that, it develops a two-country model of exogenous growth with investment-specific technological change. In autarky, one country enjoys perpetual growth, while the other economy remains stagnant. In the trade situation, the terms of trade become increasingly favourable to the stagnant economy, which results in the transmission of growth. The continuous improvement in the quality of imported capital goods relative to exported consumption goods is the reason why this occurs. Moreover, countries converge in per capita income if trade is characterised by incomplete specialisation.

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“…This gain is not sizeable without investment and without trade liberalisation in capital goods, as the production of capital equipment is concentrated in a very limited number of R&D intensive countries. According to Sakellaris and Wilson (2004), embodied technological change could account for as much as two-thirds of TFP growth in US manufacturing plants.…”

mentioning

confidence: 99%

Dynamic Gains from Trade

Nordås

Miroudot

Kowalski

2006

OECD Trade Policy Papers

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The post world war II era has been characterized by unprecedented growth in the world economy and progressive reduction in barriers to international trade and investment. The objective of this study is to assess to what extent the observed growth and deepening international economic integration are related. It begins by discussing the concept of dynamic gains from trade. Narrowly defined, dynamic gains are traderelated changes in the long-run rate of productivity growth. Although there is no conclusive evidence that trade has dynamic effects in this narrow sense, there is robust evidence that open economies are richer and more productive than closed economies. The studies that most convincingly establish this link find that an increase in the share of trade in GDP of one percentage point raises the income level by between 0.9 and 3%. The study identifies four possible channels through which trade and foreign direct investment affect productivity levels and growth rates: i) better resource allocation, ii) deepening specialization, iii) higher return to investment in capital and R&D and iv) technology spillovers. Strictly speaking, only technology spillovers have an impact on the long-run productivity growth rate, but quantifying such spillovers and their impact has proved difficult. The study also discusses the performance of applied general equilibrium models in quantifying gains from trade and concludes with suggestions on further research in order to improve such models.

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Quantifying embodied technological change

Cited by 83 publications

References 35 publications

Embodied learning by investing and speed of convergence

Embodied learning by investing and speed of convergence

Quality of Imports Relative to Exports, and the Transmission of Sustained Growth through the Terms of Trade

Dynamic Gains from Trade

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