Uncertainty-driven growth

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

In this paper, I present a model in which firm-level uncertainty raises aggregate productivity growth. The mechanism for this is learning-by-doing in the research sector: firms undertake research to reduce uncertainty, which results in social knowledge accumulation that improves the productivity of future research. The model explains the positive correlation between TFP growth and dispersion in manufacturing industries.

Original languageEnglish
Pages (from-to)897-912
Number of pages16
JournalJournal of Economic Dynamics and Control
Volume34
Issue number5
DOIs
Publication statusPublished - 2010 May 1

Keywords

  • Bayesian updating
  • Firm-level uncertainty
  • Knowledge accumulation
  • TFP growth and dispersion

ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

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