Technological Diffusion, Expectations and Welfare

N Ireland and Paul Stoneman

Oxford Economic Papers, 1986, vol. 38, issue 2, 283-304

Abstract: This paper investigates a simple intertemporal model to illustrate the effect of different forms of expectations formation by the buyers of technolog y on the extent and time path of the usage of a new technology. In addition, the related questions of the optimal rate oftake up of new technology, and the des ign of policies to achieve such a rate, are considered. Copyright 1986 by Royal Economic Society.

Date: 1986
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