Groth, Christian and Wendner, Ronald (2012): Embodied learning by investing and speed of convergence.
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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|
|Keywords:||Transitional dynamics, speed of convergence, learning by investing, embodied technological progress, decomposable dynamics|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving
|Depositing User:||Ron Wendner|
|Date Deposited:||17. Oct 2012 19:54|
|Last Modified:||28. Jun 2015 22:30|
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Learning by investing, embodiment, and speed of convergence. (deposited 24. Feb 2011 18:32)
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