Technology choice and saving in the presence of a fixed adoption cost
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 40-48 |
| Journal / Publication | Review of Development Economics |
| Volume | 5 |
| Issue number | 1 |
| Publication status | Published - 2001 |
| Externally published | Yes |
Link(s)
Abstract
This paper explores the relationship between technology choice and saving in the presence of fixed costs of technology adoption. While richer agents adopt the more productive technology immediately it is available, poorer agents optimally choose to wait before switching to the better technology. In the interim, they save more than others and more than in the absence of the prospect of switching to the new technology. The paper thus provides an explanation for the phenomenon that the saving rate and the growth rate of output increase over time in the transition.
Citation Format(s)
Technology choice and saving in the presence of a fixed adoption cost. / Leung, Charles Ka Yui; Tse, Chung Yi.
In: Review of Development Economics, Vol. 5, No. 1, 2001, p. 40-48.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
