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dc.contributor.author	Zilibotti, Fabrizio
dc.contributor.author	Aghion, Philippe
dc.contributor.author	Acemoglu, Daron
dc.date.accessioned	2010-11-15T15:00:44Z
dc.date.issued	2006
dc.identifier.citation	Acemoglu, Daron, Philippe Aghion, and Fabrizio Zilibotti. 2006. Distance to frontier, selection, and economic growth. Journal of the European Economic Association 4(1): 37-74.	en_US
dc.identifier.issn	1542-4774	en_US
dc.identifier.issn	1542-4766	en_US
dc.identifier.uri	http://nrs.harvard.edu/urn-3:HUL.InstRepos:4554122
dc.description.abstract	We analyze an economy where firms undertake both innovation and adoption of technologies from the world technology frontier. The selection of high-skill managers and firms is more important for innovation than for adoption. As the economy approaches the frontier, selection becomes more important. Countries at early stages of development pursue an investment-based strategy, which relies on existing firms and managers to maximize investment but sacrifices selection. Closer to the world technology frontier, economies switch to an innovation-based strategy with short-term relationships, younger firms, less investment, and better selection of firms and managers. We show that relatively backward economies may switch out of the investment-based strategy too soon, so certain policies such as limits on product market competition or investment subsidies, which encourage the investment-based strategy, may be beneficial. However, these policies may have significant long-run costs because they make it more likely that a society will be trapped in the investment-based strategy and fail to converge to the world technology frontier.	en_US
dc.description.sponsorship	Economics	en_US
dc.language.iso	en_US	en_US
dc.publisher	MIT Press	en_US
dc.relation.isversionof	doi:10.1162/jeea.2006.4.1.37	en_US
dash.license	LAA
dc.title	Distance to Frontier, Selection, and Economic Growth	en_US
dc.type	Journal Article	en_US
dc.description.version	Version of Record	en_US
dc.relation.journal	Journal of the European Economic Association	en_US
dash.depositing.author	Aghion, Philippe
dc.date.available	2010-11-15T15:00:44Z

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