Crecimiento exógeno de difusión endógena

This paper deals with the problem of technological diffusion in an economy where agents interact locally. They are situated on a two dimension network, as in the “Ising Model” well known in Physics. Two different levels of productivity are proposed and every agent’s probability to choose one of them depends on his neighbours’ choice and on the level of government’s expenditures. The equilibrium underscores a critical value of initial conditions. When the initial level of the output is “low”, the country is too poor to create sufficient strategic complementarities between agents. So it grows locally. When the level of output is “high”, the country can find the way of entirely adopting the new technology. So it grows collectively.