Where Micro meets Macro in Technology Space

Abstract

"We describe three key elements in economic growth models: general purpose technologies (GPTs), institutions, and infrastructure. In existing growth models, these are addressed from a very aggregate perspective, but we emphasize that their microeconomic structures are complex and often involve commons aspects. We discuss the similarities and differences between GPTs, institutions, and infrastructure from both the demand and supply side perspectives. We use that comparison to draw more specific lessons from growth models on the contributions of each of the growth drivers and the policy implications for how they can be managed."