Showing papers by "Jeremy Greenwood published in 2007"
TL;DR: In this article, two approaches taken to the embodiment question are compared and discussed: quantitative theory and traditional growth accounting, and the two approaches give very different estimates for the contribution of investment-specific technological advance to economic growth.
63 citations
TL;DR: In this article, a simple model of consumer demand is formulated that uses a slightly modified version of standard preferences, which permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero, implying that the good won't be consumed at a high enough price.
Abstract: The welfare gain to consumers from the introduction of personal computers is estimated here. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero, implying that the good won't be consumed at a high enough price. It also bounds the consumer surplus derived from the product. The model is calibrated and estimated using standard national income and product account data. The welfare gain from the introduction of personal computers is in the range of 2 percent to 3 percent of consumption expenditure.
9 citations
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TL;DR: In this paper, a costly state verification framework is embedded into the standard growth model to address how technological progress in financial intermediation affects the economy, and the efficacy of monitoring depends upon the amount of resources invested in the activity.
Abstract: To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into the standard growth model. The framework has two novel features. First, firms differ in the risk/return combinations that they offer. Second, the efficacy of monitoring depends upon the amount of resources invested in the activity. A financial theory of firm size results. Undeserving firms are over financed, deserving ones underfunded. Technological advance in intermediation leads to more capital accumulation and a redirection of funds away from unproductive firms toward productive ones. Quantitative analysis suggests that finance is important for growth.
7 citations
Posted Content•
TL;DR: In this article, a simple model of consumer demand is formulated that uses a slightly modified version of standard preferences, and the modification permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero.
Abstract: The welfare gain to consumers from the introduction of personal computers is estimated here. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero. This implies that the good won't be consumed at a high enough price. It also bounds the consumer surplus derived from the product. The model is calibrated/estimated using standard national income and product account data. The welfare gain from the introduction of personal computers is in the range of 2 to 3 percent of consumption expenditure.
6 citations