Four Models of Knowledge Diffusion and Growth

Erzo Luttmer

No 724, Working Papers from Federal Reserve Bank of Minneapolis

Abstract: This paper describes how long-run growth emerges in four closely related models that combine individual discovery with some form of social learning. In a large economy, there is a continuum of long-run growth rates and associated stationary distributions when it is possible to learn from individuals in the right tail of the productivity distribution. What happens in the long run depends on initial conditions. Two distinct literatures, one on reaction-diffusion equations, and another on quasi-stationary distributions suggest a unique long-run outcome when the initial productivity distribution has bounded support.

Keywords: Growth; Knowledge diffusion (search for similar items in EconPapers)
JEL-codes: O33 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-05-26
New Economics Papers: this item is included in nep-knm
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmwp:724

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