An Intensive Exploration of Technology Diffusion

Diego Comin and Martí Mestieri

No 16379, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a tractable model for the analysis of the relationship between economic growth and the intensive and extensive margins of technology adoption. At the aggregate level, our model is isomorphic to a neoclassical growth model. The microeconomic underpinnings of growth come from technology adoption of firms, both at the extensive and the intensive margin. We use a data set of 15 technologies and 166 countries to estimate the intensive and extensive margin of adoption using the structural equations derived from our model. We find that the variability across countries in the intensive margin is higher than in the extensive margin. The cross country variation in intensive margin of adoption accounts for around 40% of the variation in income per capita.

JEL-codes: E13 O14 O33 O41 (search for similar items in EconPapers)
Date: 2010-09
Note: DAE EFG ITI PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (175)

Published as Technology Diffusion: Measurement, Causes and Consequences (with Diego Comin), Handbook of Economic Growth, vol. 2 .

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