Economic Transformations: General Purpose Technologies and Long-Term Economic GrowthThis book examines the long term economic growth that has raised the West's material living standards to levels undreamed of by counterparts in any previous time or place. The authors argue that this growth has been driven by technological revolutions that have periodically transformed the West's economic, social and political landscape over the last 10,000 years and allowed the West to become, until recently, the world's only dominant technological force. Unique in the diversity of the analytical techniques used, the book begins with a discussion of the causes and consequences of economic growth and technological change. The authors argue that long term economic growth is largely driven by pervasive technologies now known as General Purpose (GPTs). They establish an alternative to the standard growth models that use an aggregate production function and then introduce the concept of GPTs, complete with a study of how these technologies have transformed the West since the Neolithic Agricultural Revolution. Early modern science is given more importance than in most other treatments and the 19th century demographic revolution is studied with a combination of formal models of population dynamics and historical analysis. The authors argue that once sustained growth was established in the West, formal models can shed much light on its subsequent behaviour. They build non-conventional, dynamic, non-stationary equilibrium models of GPT-driven growth that incorporate a range of phenomena that their historical studies show to be important but which are excluded from other GPT models in the interests of analytical tractability. The book concludes with a study of the policy implications that follow from their unique approach. |
Other editions - View all
Common terms and phrases
activity adaptive expectations agents aggregate production function agricultural allocation alter applied R&D argue assumption behaviour Carlaw Chapter competition complementarities concept constant consumption cost create curve diffusion discussed early modern economic growth efficiency electricity embodied empirical endogenous equation equilibrium Europe evolutionary evolved example existing externalities facilitating structure factories firms GPT arrives growth rate human capital important Industrial Revolution innovation inputs intensive growth invention Islamic labour lean production Lipsey living standards logistic curve machines macro major maximizing measured mechanical nanotechnology neoclassical nineteenth century number of children output parameter path dependence period policy structure population production function programme pure knowledge purpose technologies result returns to scale rise S-E theory scale effects scientific Second Industrial Revolution sector specific spillovers steam engine structural adjustment Sumer sustained growth technological change technological knowledge trajectory typically uncertainty variables
Popular passages
Page 163 - ...the heavy plough, open fields, the new integration of agriculture and herding, three field rotation, modern horse harness, nailed horseshoes and...
Page 216 - ... |N|anotechnology could have more effect on our material existence than those last two great inventions in that domain - the replacement of sticks and stones by metals and cements and the harnessing of electricity.
Page 245 - Generally, he was a fair arithmetician, knew something of geometry, levelling and mensuration, and in some cases possessed a very competent knowledge of practical mathematics. He could calculate the velocities, strength and power of machines: could draw in plan and section...
Page 32 - While natural trajectories almost invariably have special elements associated with the particular technology in question, in any era there appear to be certain natural trajectories that are common to a wide range of technologies. Two of these have been relatively well identified in the literature: progressive exploitation of latent scale economies, and increasing mechanization of operations that have been done by hand.
Page 166 - It witnessed, in fact, an industrial revolution due to scientific discoveries and changes in technique; a revolution which brought poverty, unemployment and discontent to certain old centres of the industry, but wealth, opportunity and prosperity to the country as a whole, and which was destined to alter the face of medieval England.
Page 79 - North has pointed to the path dependence of institutions, noting that "once a development path is set on a particular course, the network externalities, the learning process of organizations, and the historically derived subjective modeling of the issues reinforce the course...
Page 204 - Toward this end, lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in enormous variety.
Page 276 - Prophet, who is quoted as saying that 'the worst things are those that are novelties, every novelty is an innovation, every innovation is an error and every error leads to Hell-fire'.
Page 195 - The growing productivity of industrial economies is the complex outcome of large numbers of interlocking, mutually reinforcing technologies, the individual components of which are of very limited economic consequences by themselves. The smallest relevant unit of observation, therefore, is seldom a single innovation but, more typically, an interrelated cluster of innovations.
Page 178 - ... and the colleges. And what did he, to his bitter discomfiture find there? A well organized and powerful guild of the booktrade, the Confrerie des Libraires, Relieurs, Enlumineurs, Ecrivains et Parcheminiers . . . founded in 1401 . . . Alarmed at the appearance of an outsider with such an unheard of treasure of books; when he was found to be selling one Bible after another, they soon shouted for the police, giving their expert opinion that such a store of valuable books could be in one man's possession...