Catch-up and fall-back through innovation and imitation |
| |
Authors: | Jess Benhabib Jesse Perla Christopher Tonetti |
| |
Institution: | 1. Department of Economics, New York University, 19 W 4th St, 6th Floor, New York, NY, 10012, USA 2. Vancouver School of Economics, University of British Columbia, 997-1873 East Mall, Vancouver, BC, V6T 1Z1, Canada 3. Graduate School of Business, Stanford University, 655 Knight Way, Stanford, CA, 94305, USA
|
| |
Abstract: | Will fast growing emerging economies sustain rapid growth rates until they “catch-up” to the technology frontier? Are there incentives for some developed countries to free-ride off of innovators and optimally “fall-back” relative to the frontier? This paper models agents growing as a result of investments in innovation and imitation. Imitation facilitates technology diffusion, with the productivity of imitation modeled by a catch-up function that increases with distance to the frontier. The resulting equilibrium is an endogenous segmentation between innovators and imitators, where imitating agents optimally choose to “catch-up” or “fall-back” to a productivity ratio below the frontier. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|