Uncertainty-driven growth

Koki Oikawa

Journal of Economic Dynamics and Control, 2010, vol. 34, issue 5, 897-912

Abstract: In this paper, I present a model in which firm-level uncertainty raises aggregate productivity growth. The mechanism for this is learning-by-doing in the research sector: firms undertake research to reduce uncertainty, which results in social knowledge accumulation that improves the productivity of future research. The model explains the positive correlation between TFP growth and dispersion in manufacturing industries.

Keywords: Firm-level; uncertainty; Knowledge; accumulation; TFP; growth; and; dispersion; Bayesian; updating (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:34:y:2010:i:5:p:897-912

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