Big Data

The Intensive Margin Of Technology Adoption

Date Added: May 2010
Format: PDF

The authors present a tractable model for analyzing the relationship between economic growth and the intensive and extensive margins of technology adoption. The "Extensive" margin refers to the timing of a country's adoption of a new technology; the "Intensive" margin refers to how many units are adopted (for a given size economy). At the aggregate level, the model is isomorphic to a neoclassical growth model, while at the microeconomic level it features adoption of firms at the extensive and the intensive margin.