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Linkages, Thresholds, and Development

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  • Kelly, Morgan

Abstract

Growth is rare historically, with short expansions interspersed with long periods of stasis. We examine how well this can be explained by a general class of Schumpeterian growth models that treat development as a progress through a space of commodities, from simple to more complex goods. This process of sequential innovation in a partially ordered network of commodities is called linkage formation. The central result of this article is that Schumpeterian growth models exhibit generic threshold behavior. Below a critical probability of linkage formation, development gradually ceases. Above the critical probability, innovation continues with probability one. Copyright 2001 by Kluwer Academic Publishers

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  • Kelly, Morgan, 2001. "Linkages, Thresholds, and Development," Journal of Economic Growth, Springer, vol. 6(1), pages 39-53, March.
    • Handle: RePEc:kap:jecgro:v:6:y:2001:i:1:p:39-53
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      by Jim in Our Word is Our Weapon on 2010-11-16 09:03:25

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