Knowledge Spillovers and Inequality
- 1 November 2002
- journal article
- Published by American Economic Association in American Economic Review
- Vol. 92 (5) , 1290-1307
- https://doi.org/10.1257/000282802762024511
Abstract
We develop a dynamic model with knowledge spillovers in production. The model contains two opposing forces. Imitation of other firms helps followers catch up with leaders, but the prospect of doing so makes followers want to free ride. The second force dominates and creates permanent inequality. We show that the greater are the average spillovers and the easier they are to obtain, the greater is the free-riding and inequality. More directed copying raises inequality by raising the free-riding advantages of hanging back. Using Compustat and patent-citation data we find that copying is highly undirected.Keywords
This publication has 18 references indexed in Scilit:
- International Evidence on the Value of Corporate DiversificationThe Journal of Finance, 1999
- Zipf's Law for Cities: An ExplanationThe Quarterly Journal of Economics, 1999
- Why do Some Countries Produce So Much More Output Per Worker than Others?The Quarterly Journal of Economics, 1999
- Appropriate Technology and GrowthThe Quarterly Journal of Economics, 1998
- The Dynamics of Productivity in the Telecommunications Equipment IndustryEconometrica, 1996
- Competitive DiffusionJournal of Political Economy, 1994
- Decomposing Learning by Doing in New PlantsJournal of Political Economy, 1993
- Increasing Returns and Long-Run GrowthJournal of Political Economy, 1986
- The Economics of InformationJournal of Political Economy, 1961
- A Pure Theory of Local ExpendituresJournal of Political Economy, 1956