| Abstract: |
We develop a model that, at the aggregate level, is similar to the one sector
neoclassical growth model, while, at the disaggregate level, has implications
for the path of observable measures of technology adoption. We estimate our
model using data on the diffusion of 15 technologies in 166 countries over the
last two centuries. We evaluate the implications of our estimates for
aggregate TFP and per capita income. Our results reveal that, on average,
countries have adopted technologies 47 years after their invention. There is
substantial variation across technologies and countries. Over the past two
centuries, newer technologies have been adopted faster than old ones. The
cross-country variation in the adoption of technologies accounts for at least
a quarter of per capita income differences. |