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Author: Dimitri Lenzin Publisher: ISBN: Category : Languages : en Pages :
Book Description
We study the effects of income inequality on technology adoption lags and on long-run technology penetration rates. Building on the model and findings of Comin and Mestieri (2013a), we analyze a sample of 72 countries between 1960 and 1995. They find converging adoption lags and diverging penetration rates between Western and non-Western countries. This evolution explains 80% of the Great Income Divergence between the two country groups. Applying pooled OLS, we find that it matters where in the income distribution the inequality appears, which confirms our theoretical predictions. In contrast, overall inequality measured by the Gini coefficient is too broad to be significant. Hence, quantile income shares are crucial. Distortion-free redistribution from the rich to the poor decreases the adoption lag. Moreover, a higher income share of the middle class at the expense of the rich or the poor increases the adoption lag. When it comes to the long run technology penetration rate, we find that lower overall inequality increases the penetration. Increasing the income share of the middle class at the expense of the rich or the poor increases the penetration rate. Our results suggest that a strong middle class increased the adoption lags and penetration rates in Western countries. Therefore, it may account for some of the convergence of adoption lags and divergence of penetration rates between the two country groups.
Author: Dimitri Lenzin Publisher: ISBN: Category : Languages : en Pages :
Book Description
We study the effects of income inequality on technology adoption lags and on long-run technology penetration rates. Building on the model and findings of Comin and Mestieri (2013a), we analyze a sample of 72 countries between 1960 and 1995. They find converging adoption lags and diverging penetration rates between Western and non-Western countries. This evolution explains 80% of the Great Income Divergence between the two country groups. Applying pooled OLS, we find that it matters where in the income distribution the inequality appears, which confirms our theoretical predictions. In contrast, overall inequality measured by the Gini coefficient is too broad to be significant. Hence, quantile income shares are crucial. Distortion-free redistribution from the rich to the poor decreases the adoption lag. Moreover, a higher income share of the middle class at the expense of the rich or the poor increases the adoption lag. When it comes to the long run technology penetration rate, we find that lower overall inequality increases the penetration. Increasing the income share of the middle class at the expense of the rich or the poor increases the penetration rate. Our results suggest that a strong middle class increased the adoption lags and penetration rates in Western countries. Therefore, it may account for some of the convergence of adoption lags and divergence of penetration rates between the two country groups.
Author: Ari Hyytinen Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We study the effect of within-country income inequality on the diffusion of mobile phones using data on market penetration in a sample of developing countries from 1985 to 1998. Mobile phones are an example of international technology, originating in industrialized countries and diffusing worldwide. We find that income inequality, as measured by the income share of the highest earning deciles, has a positive effect on the early diffusion of mobile phones and that the estimated effect becomes greater when a measure of agricultural endowments is used as an instrument. The instrumental variable results are robust to weak instruments. Our findings suggest that the diffusion of new technologies originating from industrialized countries may generate yet another channel that links inequality and development.
Author: Sanjay Kumar Rout Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Income inequality has been growing since the mid-1980s, with tremendous intensification in India's degree of openness and technological breakthrough. In this context, this study attempts to analyse two questions: whether trade openness, financial openness and technology diffusion improve or worsen income inequality in India? And, does the relationship between openness and income inequality rest on the technology diffusion? Using the Bounded ARDL model, the results confirmed that economic (in aggregate), trade openness, and technology diffusion significantly worsen income distribution in the short & long run. The financial openness impact on inequality is trivial. The results also confirmed that the relationship between openness and income inequality depends on technology diffusion that significantly improves income distribution. The policy implications are mentioned in the conclusion section.
Author: Zia Qureshi Publisher: Brookings Institution Press ISBN: 081573901X Category : Business & Economics Languages : en Pages : 298
Book Description
Addressing the big questions about how technological change is transforming economies and societies Rapid technological change—likely to accelerate as a consequence of the COVID-19 pandemic—is reshaping economies and how they grow. But change also causes disruption, creates winners and losers, and produces social stress. This book examines the challenges of digital transformation and suggests how creative policies can make it more productive and inclusive. Shifting Paradigms is the second book on technological change produced by a joint research project of the Brookings Institution and the Korea Development Institute. Contributors are experts from the United States, Europe, and Korea. The first volume, Growth in a Time of Change, was published by Brookings in February 2020. The book's underlying thesis is that the future is arriving faster than expected. Long-accepted paradigms about economic growth are changing as digital technologies transform markets and nearly every aspect of business and work. Change will only intensify with advances in artificial intelligence and other innovations. Investors, business leaders, workers, and public officials face many questions. Is rising market concentration inevitable with the new technologies or can their benefits be more widely shared? How can the promise of FinTech be captured while managing risks? Should workers fear the new automation? Are technology-driven shifts in business and work causing income inequality to rise? How should public policy respond? Shifting Paradigms addresses these questions in an engaging manner for anyone interested in understanding how the economic and social agenda is being transformed by today's winds of change.
Author: Boyan Jovanovic Publisher: ISBN: Category : Diffusion of innovations Languages : en Pages : 64
Book Description
One usually accounts for output growth in terms of the growth of the primary inputs: labor, physical capital, and possibly human capital. In this paper we account for growth with labor and with intermediate goods. Because we have no measures of the extent of adoption of most intermediate goods in most countries, we have to assume something about how they spread, based on what we see in U.S. data. We find that if all countries have (al the same production function, (b) the same speed of adoption technology, and (c) imperfectly correlated technology shocks, then we can easily account for the extent and persistence of inequality among nations. Unfortunately, while it easily generates the sorts of low frequency movements that we observe, our technology shock seems to have little to do with high frequency movements in GNP so that if our definition of this shock is correct, real business cycle models are way off the mark.
Author: Susan Cozzens Publisher: Edward Elgar Publishing ISBN: 1781951675 Category : Technology & Engineering Languages : en Pages : 357
Book Description
Susan Cozzens, Dhanaraj Thakur, and the other co-authors ask how the benefits and costs of emerging technologies are distributed amongst different countries _ some rich and some poor. Examining the case studies of five technologies across eight countri
Author: Adrian Jäggi Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation uses theoretical as well as empirical tools to study determinants of cross-country differences in income growth, focussing on the role of consumer inequality, values, and the diffusion process of technologies. Chapter 1 investigates how household income inequality shapes the diffusion of technologies. A simple demand side model with hierarchical preferences is used to show that after some minimum level of average income relative to the price of the technology is achieved, more consumer inequality hinders the diffusion process for new technologies. Using data on 39 major technologies, the empirical part tests this proposition. It is found that more inequality, as measured by the Gini index, is detrimental to the diffusion of new technology, while a large middle class is conducive to technology diffusion. These effects are stronger for consumer than for producer technologies. Furthermore, there is some evidence that the negative effect of inequality on the diffusion of technologies is more pronounced in rich countries. For the extensive margin, the chapter presents evidence for a positive effect of inequality on technology adoption. Chapter 2 introduces a model of creative destruction with non-homothetic preferences for quality to study the joint growth effects of inequality and openness. While the growth effects of consumer inequality are non-trivial, the chapter shows that once it is possible for rich consumers to import high quality goods, higher inequality interacted with more openness has a negative impact on quality upgrading in countries that are not operating at the technology frontier. This effect materializes through reduced incentives for domestic firms to innovate. The empirical analysis uses sectoral quality data to investigate these model predictions. It is shown that for developing countries, consumer inequality and openness indeed have a joint negative effect on the rate of quality upgrading. Chap.
Author: Zia Qureshi Publisher: Brookings Institution Press ISBN: 081573901X Category : Business & Economics Languages : en Pages : 298
Book Description
Addressing the big questions about how technological change is transforming economies and societies Rapid technological change—likely to accelerate as a consequence of the COVID-19 pandemic—is reshaping economies and how they grow. But change also causes disruption, creates winners and losers, and produces social stress. This book examines the challenges of digital transformation and suggests how creative policies can make it more productive and inclusive. Shifting Paradigms is the second book on technological change produced by a joint research project of the Brookings Institution and the Korea Development Institute. Contributors are experts from the United States, Europe, and Korea. The first volume, Growth in a Time of Change, was published by Brookings in February 2020. The book's underlying thesis is that the future is arriving faster than expected. Long-accepted paradigms about economic growth are changing as digital technologies transform markets and nearly every aspect of business and work. Change will only intensify with advances in artificial intelligence and other innovations. Investors, business leaders, workers, and public officials face many questions. Is rising market concentration inevitable with the new technologies or can their benefits be more widely shared? How can the promise of FinTech be captured while managing risks? Should workers fear the new automation? Are technology-driven shifts in business and work causing income inequality to rise? How should public policy respond? Shifting Paradigms addresses these questions in an engaging manner for anyone interested in understanding how the economic and social agenda is being transformed by today's winds of change.
Author: Jeremy Greenwood Publisher: American Enterprise Institute ISBN: 9780844770932 Category : Business & Economics Languages : en Pages : 52
Book Description
In this text the author argues that rapid technological change, sluggish real wage growth, and widening inequality have characterized earlier periods of economic growth of revolutionary new technologies.
Author: Dimitri Lenzin
Author: Dimitri Lenzin
Author: Lex Borghans
Author: Ari Hyytinen
Author: Sanjay Kumar Rout
Author: Zia Qureshi
Author: Boyan Jovanovic
Author: Susan Cozzens
Author: Adrian Jäggi
Author: Zia Qureshi
Author: Jeremy Greenwood