Frictionless Technology Diffusion: The Case of Tractors / Rodolfo Manuelli, Ananth Seshadri.

Format:

Book

Author/Creator:

Manuelli, Rodolfo.

Contributor:

Seshadri, Ananth.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9604.

NBER working paper series no. w9604

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Frictionless Technology Diffusion

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2003.

Summary:

Empirical evidence suggests that there is a long lag between the time a new technology is introduced and the time at which it is widely adopted. The conventional wisdom is that these observations are inconsistent with the predictions of the frictionless neoclassical model. In this paper we show this to be incorrect. Once the appropriate driving forces are taken into account, the neoclassical model can account for slow' adoption. We illustrate this by developing an industry model to study the equilibrium rate of diffusion of tractors in the U.S. between 1910 and 1960.

Notes:

April 2003.

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