Time-to-build, obsolescence and the technological paradox

Fabrizio Patriarca ()

Structural Change and Economic Dynamics, 2012, vol. 23, issue 1, 1-10

Abstract: The paper focusses on the technological paradox. To analyze the possible temporary negative effect of an innovation we make use of a flow representation of production. Our aim is to show that such phenomenon can be justified by a simple property of the production process: in real time costs strictly come before proceeds. Moving in the same direction of Amendola (1972), and extending an overlooked result in Belloc (1980), we analyze the obsolescence effect induced by a rise in the interest rate. Furthermore, we analyze the role of capital market stickiness on the timing of the technological paradox and on the distribution of the obsolescence effect among the different stages of a vertical integrated production system.

Keywords: Technological paradox; Technology adoption; Time-to-build; Obsolescence (search for similar items in EconPapers)
JEL-codes: O3 O4 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Time-to-build obsolescence and the technological paradox (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:23:y:2012:i:1:p:1-10

DOI: 10.1016/j.strueco.2011.08.002

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