Robert E. Lucas, JR on the industrial revolution
22 Feb 2017 Leave a comment
in applied price theory, development economics, economic growth, economic history, macroeconomics, Robert E. Lucas Tags: industrial revolution, The Great Enrichment
The robots to get everybody’s jobs and then some 150 years ago
21 Feb 2017 Leave a comment
in economic history, industrial organisation, labour economics, labour supply Tags: creative destruction, technological unemployment
Life in The Past Was Awful & Gross. Here’s Why
20 Feb 2017 Leave a comment
in economic history, health economics Tags: The Great Enrichment, The Great Fact
Dead Wrong™ with Johan Norberg – Green Tariffs?
19 Feb 2017 Leave a comment
in applied price theory, applied welfare economics, development economics, economic history, environmental economics, global warming, international economics Tags: climate alarmism, green tariffs
Dead Wrong™ with Johan Norberg – An Unequal World?
18 Feb 2017 Leave a comment
in development economics, economic history, growth miracles Tags: The Great Enrichment, The Great Escape, The Great Fact
Socialism Exposed – Bernie Sanders, Ted Cruz
16 Feb 2017 Leave a comment
in applied price theory, economic history, health economics Tags: Obamacare
The tractors are coming, the tractors are coming for all the horses
16 Feb 2017 Leave a comment
in economic history, industrial organisation, labour economics, labour supply Tags: agricultural economics, creative destruction, technological unemployment, technology diffusion
Many new technologies display long adoption lags, and this is often interpeted as evidence of frictions inconsistent with the standard neoclassical model. We study the diffusion of the tractor in American agriculture between 1910 and 1960 — a well known case of slow diffusion — and show that the speed of adoption was consistent with the predictions of a simple neoclassical growth model.
The reason for the slow rate of diffusion was that tractor quality kept improving over this period and, more importantly, that only when wages increased did it become relatively unprofitable to operate the alternative, labor-intensive, horse technology
Source: Frictionless Technology Diffusion: The Case of Tractors By RODOLFO E. MANUELLI AND ANANTH SESHADRI






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