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Contents

Page

I.

Introduction.....................................................................................................................3

II.

The Model.......................................................................................................................3

  • A.

    Conceptual Framework..............................................................................................3

  • B.

    The Model Equations .................................................................................................6

  • C.

    Explaining Technology Accumulation and Diffusion:

The Model with Many Countries...............................................................................8

  • III.

    Estimation .....................................................................................................................11

    • A.

      Methodology and Data.............................................................................................11

    • B.

      Estimation Results....................................................................................................12

  • IV.

    Policy Implications .......................................................................................................15

  • V.

    Conclusions...................................................................................................................17

Appendix...................................................................................................................................34

References.................................................................................................................................46

Tables

1.

Estimation Results ........................................................................................................13

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