Learning-by-doing and aggregate fluctuations: Does the form of the accumulation technology matter?

Abstract

Several authors have identified learning-by-doing as a mechanism capable of generating the endogenous propagation of shocks in RBC models. It is shown that this endogenous propagation mechanism depends upon the dynamic structure associated with learning, rather than any functional form assumptions on the accumulation technology. © 2006 Elsevier B.V. All rights reserved.