Groth, Christian and Wendner, Ronald (2012): Embodied learning by investing and speed of convergence.
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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.
Item Type:  MPRA Paper 

Original Title:  Embodied learning by investing and speed of convergence 
English Title:  Embodied learning by investing\\and speed of convergence 
Language:  English 
Keywords:  Transitional dynamics, speed of convergence, learning by investing, embodied technological progress, decomposable dynamics 
Subjects:  O  Economic Development, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O41  One, Two, and Multisector Growth Models D  Microeconomics > D9  Intertemporal Choice and Growth > D91  Intertemporal Consumer Choice; Life Cycle Models and Saving 
Item ID:  42017 
Depositing User:  Ron Wendner 
Date Deposited:  17. Oct 2012 19:54 
Last Modified:  19. Oct 2014 19:52 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/42017 
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Learning by investing, embodiment, and speed of convergence. (deposited 24. Feb 2011 18:32)
 Embodied learning by investing and speed of convergence. (deposited 17. Oct 2012 19:54) [Currently Displayed]