Keywords: Search frictions, technology adoption
Abstract: Recent empirical work reveals considerable heterogeneity in the use of
technologies within industries, suggesting technology adoption depends
on factors other than industry type. We present a model in which the
factors that lead to heterogenous technology adoption play a key
economic role in explaining other aspects of the U.S. economy that
have been the focus of recent theoretical work, including wage and
technology dispersion within and between skill groups and the U-shaped
pattern of measured productivity that many other researchers have
attributed to learning economies or to production externalities.
Full paper (314 KB PDF)
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Last update: February 9, 2009