Publication Type

Working Paper

Version

publishedVersion

Publication Date

7-2002

Abstract

After the record-breaking run of high-speed growth in the United States during the late 1990s, a pressing question is Has anything fundamental changed in our growth engine? This paper examines an IT-led endogenous growth model driven by technology diffusion. Diffusion is in turn driven by network effect embodied in new technologies. The equilibrium long-term growth rate is however found to be independent of such technology networks. A novelty in our model is that innovation is discontinuous and it is separated by periods of diffusion. This (IT) network-diffusion is shown to be Sigmoid, and diffusion speed is slower than socially optimal.

Keywords

network, diffusion, growth, IT, new economy

Discipline

Economics | Growth and Development | Technology and Innovation

Research Areas

Macroeconomics

Volume

08-2002

First Page

1

Last Page

24

Publisher

SMU Economics and Statistics Working Paper Series, No. 8-2002

City or Country

Singapore

Copyright Owner and License

Authors

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