Investigate individual (firm’s) motivations to undertake technological innovation. In particular how does the assumption of maximizing b

Investigate individual (firm’s) motivations to undertake technological innovation. In particular how does the assumption of maximizing behaviour fit with the outcome of innovative activity? Do firms who innovate always achieve optimal outcome? How does this compare with the standard model of the firm in microeconomics? Explain any differences. Nelson and Winter (1982) is a good starting point. Relate uncertainty, technological complementarity and path dependence. Under what conditions do these result in increasing returns to scale? This exercise requires an understanding of the formal modelling found in Brian Aurthur (1994) on the limits of rationality and notions of path dependence and in Carlaw (2004) on production functions for capital. Did South American civilizations lack critical technologies or science that enabled Europe to undergo mechanization and economic growth where they did not? This is a comparative exercise trying to identify particular technologies or pieces of science as necessary to sustain a long run growth process. How important is population growth in the story of long run economic growth? How do population fertility dynamics affect an economy’s competitiveness? Think about this question in terms of our measures (real and hypothetical) of human wellbeing. Malthus is an obvious starting point but read Lipsey and Carlaw (2000) to get a view of Malthus. Modelling the growth process driven by GPTs. This requires a literature review of the various GPT growth models and some technical mathematical skill. You should discuss this with me at before taking it on. See Carlaw and Lipsey (2002), Helpman (1998), Aghion and Howitt (1998) and Chapters 14 and 15 of LCB. Compare and contrast various aggregate growth models form Solow through endogenous growth theory (e.g., Lucas (1988) and Romer (1990)) to models that explicitly account for technological change. How do these models relate to competitiveness? Conduct a literature review of the various measures of technological progress that have been posited such as TFP, R&D spillovers, etc. Provide a possible alternative methodology for measuring technological change. Relate these measures to the concepts of wellbeing and competitiveness. Conduct a comprehensive literature review of the use of the concept of GPTs in theory or in it application to economic policy. If you choose the theory option you should seek to provide a history of thought approach to the development of theoretical models of endogenous technological change culminating in the models of GPT driven growth. If you choose the applied policy option you should either pick a specific policy case study and thoroughly examine how the concept of GPTs is used to motivate the policy or you should do a comprehensive literature review of the various places in which the concept of GPTs has influenced policies. In both the theory and policy cases where comprehensive literature reviews are undertake, you should provide an annotated bibliography. Discuss how technology has influenced climate change and what it might do to enable socially just adaptation to a climate changed planet.