English, Article, Journal or magazine article edition: Technology Adoption, Capital Maintenance and the Technological Gap Blanca MARTINEZ; Cagri SAGLAM; Raouf Boucekkine; ...

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Bookmark: http://trove.nla.gov.au/version/178691
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • TECHNOLOGY ADOPTION, CAPITAL MAINTENANCE AND THE TECHNOLOGICAL GAP
Author
  • Blanca MARTINEZ
  • Cagri SAGLAM
  • Raouf Boucekkine
  • Blanca Martínez
  • CARGI SAGLAM
Physical Description
  • preprint
Notes
  • In this paper, we study the properties of optimal growth models ˆ la Nelson and Phelps (1966) where the labor resources of an economy can be allocated freely either to production, technology adoption or capital maintenance. We first characterize the balanced growth paths of a benchmark model without maintenance services. Then we introduce te maintenance activity via the depreciation rate of capital. We characterize the optimal allocation of labor across the three activities. We prove that when technolgical shocks occur, equilibrium maintenance and adoption operate in opposite directions. The main prediction of the model is that though capital maintenance deepens the technological gap by diverting labor resources from adoption, it generally increases the long run output level at equilibrium
  • Technology adoption; Capital maintenance; Technological gap; Long run output level
  • RePEc:ctl:louvir:2001033
  • We study optimal growth models à la Nelson and Phelps (1966) where labor resources can be allocated either to production, technology adoption or capital maintenance. We first characterize the balanced growth paths of a benchmark model without maintenance. Then we introduce the maintenance activity via the depreciation rate of capital. We characterize the optimal allocation of labor across the three activities. Though maintenance deepens the technological gap by diverting labor resources from adoption, we show that it generally increases the long run output level. Moreover we find that equilibrium maintenance and adoption efforts respond in opposite directions to policy or technology shocks. When a technological shock occurs, the reduction of the equilibrium technological gap is incompatible with welfare maximization. Finally, we find that the long term output response to policy shocks is slightly higher in the presence of maintenance.
  • Adoption, Maintenance, Technological gap, Output gap
  • RePEc:ivi:wpasad:2003-18
Language
  • English
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