Jump to ContentJump to Main Navigation
Creating a Learning SocietyA New Approach to Growth, Development, and Social Progress$
Users without a subscription are not able to see the full content.

Joseph Stiglitz and Bruce Greenwald

Print publication date: 2014

Print ISBN-13: 9780231152143

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231152143.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 20 September 2021

Long-Term Growth and Innovation

Long-Term Growth and Innovation

Chapter:
(p.319) Chapter Ten Long-Term Growth and Innovation
Source:
Creating a Learning Society
Author(s):

Joseph E. Stiglitz

Bruce C. Greenwald

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231152143.003.0010

Both finite-period and steady-state models should be viewed only as tools to help us think through the complexities of multiperiod dynamics. The essential insights of the finite-period models in Chapters 7, 8, and 9 are valid in much more general models—for instance, the notions that monopolies will take into account learning benefits in their production decisions; competitive firms will not; neither will take into account learning externalities; and that accordingly, there is a role for government intervention, to encourage sectors with greater learning spillovers. This chapter explores special cases in which a steady state exists. It structures the cases so that whatever is optimal at time t is optimal at time t + 1; in that case, policy is directed at choosing the optimum steady state. In all of the cases, the central result is that it is optimal to permanently impose distorting taxes to encourage production in the learning sector.

Keywords:   learning models, finite-period models, steady-state models, distorting taxes, production

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .