On the Macroeconomic Effects of Major Technological Change
This paper analyses how a General Purpose Technology (GPT) diffuses throughout the various sectors of an economy. The model outlined in this paper can account for a number of empirical observations: in particular, the existence of delays followed by acceleration phases in the experimentation and implementation of a new GPT, and the occurrence of productivity slow-downs and wage inequality increases during the acceleration phase of the logistic diffusion curve.
KeywordsArrival Rate Social Learning Real Wage Intermediate Good Wage Inequality
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