Learning by Doing and the Choice of Technology

Boyan Jovanovic () and Yaw Nyarko

Econometrica, 1996, vol. 64, issue 6, 1299-1310

Abstract: In a Bayesian model of learning, the more an agent uses a technology, the better he learns its parameters. This expertise is a form of human capital. Switching to a new technology temporarily reduces expertise: the bigger the leap, the bigger the loss. This may prevent the agent from climbing the technological ladder too fast. Someone skilled may want to stick to his technology and experience no growth in the long run. But someone less skilled may want to switch technologies over and over again and, therefore, enjoy long-run growth in output. Thus, the model can give rise to overtaking. Copyright 1996 by The Econometric Society.

Date: 1996
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Working Paper: Learning by Doing and the Choice of Technology (1996)
Working Paper: Learning By Doing and the Choice of Technology (1994)
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