Journal Article
No. 2015-3 | January 29, 2015
Entrepreneurship, Knowledge, and the Industrial Revolution

Abstract

This paper constructs a two-sector unified growth model. Learning-by-doing in agriculture eventually allows the preindustrial economy to leave its Malthusian trap. But entrepreneurs in the manufacturing sector do not attempt invention if not much is known about natural phenomena. This delays the industrial revolution. Since entrepreneurs identify new useful knowledge at all times in a serendipitous way, the industrial revolution is an inevitable outcome. The paper characterizes the equilibrium path from ancient times to the infinite future. According with this characterization, the model economy successfully captures the qualitative aspects of England’s unified growth experience.

JEL Classification:

O31, O33, O41, J13, N33

Assessment

  • Downloads: 2648 (Discussion Paper: 1509)

Links

Cite As

M. Aykut Attar (2015). Entrepreneurship, Knowledge, and the Industrial Revolution. Economics: The Open-Access, Open-Assessment E-Journal, 9 (2015-3): 1–54. http://dx.doi.org/10.5018/economics-ejournal.ja.2015-3


Comments and Questions