Creating a Learning Society: A New Approach to Growth, Development, and Social Progress
Creating a Learning Society: A New Approach to Growth, Development, and Social Progress
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Abstract
This book assesses how learning helps countries grow, develop, and become more productive. It looks at what government can do to promote learning and casts light on the significance of learning for economic theory and policy. It explains that the thing that truly separates developed from less-developed countries is not just a gap in resources or output but a gap in knowledge. It shows that the pace at which developing countries grow is largely a function of the pace at which they close this knowledge gap. The book takes as its starting point Kenneth J. Arrow's 1962 paper “Learning by Doing,” and explains why the production of knowledge differs from that of other goods and why market economies alone typically do not produce and transmit knowledge efficiently. It shows that closing knowledge gaps and helping laggards learn are central steps to growth and development. It also argues that creating a learning society is crucial if we are to sustain improved living standards in advanced countries. It provides new models of “endogenous growth” and shows how well-designed government trade and industrial policies can help create a learning society, while poorly designed intellectual property regimes can retard learning. It also explains how virtually every government policy has effects, both positive and negative, on learning. It argues that free trade may lead to stagnation whereas broad-based industrial protection and exchange rate interventions may bring benefits—not just to the industrial sector, but to the entire economy.
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Front Matter
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Introduction
Joseph E. Stiglitz andBruce C. Greenwald
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Part One Creating a Learning Society: A New Approach to Growth, Development, and Social Progress: Basic Concepts
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One
The Learning Revolution
Joseph E. Stiglitz andBruce C. Greenwald
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Two
On the Importance of Learning
Joseph E. Stiglitz andBruce C. Greenwald
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Three
A Learning Economy
Joseph E. Stiglitz andBruce C. Greenwald
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Four
Creating a Learning Firm and a Learning Environment
Joseph E. Stiglitz andBruce C. Greenwald
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Five
Market Structure, Welfare, and Learning
Joseph E. Stiglitz andBruce C. Greenwald
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Six
The Welfare Economics of Schumpeterian Competition
Joseph E. Stiglitz andBruce C. Greenwald
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One
The Learning Revolution
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Part Two Analytics
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Seven
Learning in a Closed Economy—the Basic Model
Joseph E. Stiglitz andBruce C. Greenwald
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Eight
A Two-Period, N-Good Model with Endogenous Labor Supply
Joseph E. Stiglitz andBruce C. Greenwald
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Nine
Learning with Monopolistic Competition
Joseph E. Stiglitz andBruce C. Greenwald
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Ten
Long-Term Growth and Innovation
Joseph E. Stiglitz andBruce C. Greenwald
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Eleven
The Infant-Economy Argument for Protection: Trade Policy in a Learning Environment
Joseph E. Stiglitz andBruce C. Greenwald
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Seven
Learning in a Closed Economy—the Basic Model
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Part Three Policies for a Learning Society
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Twelve
The Role of Industrial and Trade Policy in Creating a Learning Society
Joseph E. Stiglitz andBruce C. Greenwald
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Thirteen
Financial Policy and Creating a Learning Society
Joseph E. Stiglitz andBruce C. Greenwald
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Fourteen
Macroeconomic and Investment Policies for a Learning Society
Joseph E. Stiglitz andBruce C. Greenwald
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Fifteen
Intellectual Property
Joseph E. Stiglitz andBruce C. Greenwald
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Sixteen
Social Transformation and the Creation of a Learning Society
Joseph E. Stiglitz andBruce C. Greenwald
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Seventeen
Concluding Remarks
Joseph E. Stiglitz andBruce C. Greenwald
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Twelve
The Role of Industrial and Trade Policy in Creating a Learning Society
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Part Four Commentary and Afterword
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Afterword: Rethinking Industrial Policy
Philippe Aghion
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End Matter
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