Monday, April 11, 2011
Chapter 23: 305-306
By 1989 there was a race to discover more about the evolution of increasing returns. Among those searching for answers were Krugman, Romer,Helpman, Grossman, Xiaokai Yang and countless graduate students. Many sensed the opportunity to increase their reputations so nearly all macro economists were involved in the battle to be the first to discover the connection between “scale and specialization.”
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A for Jane.
ReplyDeleteI would not say that all macroeconomists were working on this — I wasn't. Were many macroeconomic theorists working on it? Yes. But even then I think most of them were still working in real business cycles rather than new growth.
Extra credit for the first person to comment on what the metaphor of island hopping means in this context.
Island hopping is defined as taking a series of small journeys to islands across an ocean in stead of taking one large journey. In this context I think that it is referring to the acceptance of the new models of the growth of knowledge. They were proved in a series of small applications in order to reach the main goal of being accepted universally.
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