The Box - Marc Levinson [154]
12. The seminal article along this line was Robert Solow, “Technical Change and the Aggregate Production Function,” Review of Economics and Statistics 39, no. 2 (1957): 65–94. On the problems of innovation, see Joel Mokyr, “Technological Inertia in Economic History,” Journal of Economic History 52 (1992): 325–338; Nathan Rosenberg, “On Technological Expectations,” Economic Journal 86, no. 343 (1976): 528; and Erik Brynjolfsson and Lorin M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation, and Business Performance,” Journal of Economic Perspectives 14, no. 4 (2000): 24. Electricity was first used in manufacturing in 1883; for discussion of its relatively slow acceptance in manufacturing, see Warren D. Devine, Jr., “From Shafts to Wires: Historical Perspective on Electrification,” Journal of Economic History 43 (1983): 347–372. Examples of the debate over computers include Paul A. David, “The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox,” American Economic Review 80 (1990): 355–361; Stephen D. Oliner and Daniel E. Sichel, “The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?” Journal of Economic Perspectives 14, no. 4 (2000): 3–22; and Dale W. Jorgenson and Kevin J. Stiroh, “Information Technology and Growth,” American Economic Review 89, no. 2 (1999): 109–115.
13. Paul M. Romer, “Why, Indeed, in America? Theory, History, and the Origins of Modern Economic Growth,” Working Paper 5443, NBER, January 1996.
14. David Ricardo, The Principles of Political Economy and Taxation (London, 1821; reprint, New York, 1965), pp. 77–97. Richard E. Caves and Ronald W. Jones point out that the widely taught Heckscher-Ohlin model, which shows that a country has a comparative advantage in producing goods that make more intensive uses of its more abundant factor of production, assumes that transport costs will not affect trade; see their World Trade and Payments: An Introduction, 2nd ed. (New York, 1977). More typically, Miltiades Chacholiades, Principles of International Economics (New York, 1981), p. 333, describes international market equilibrium under the unstated assumption that trade is costless.
15. The seminal article in this field was Paul Krugman, “Increasing Returns and Economic Geography,” Journal of Political Economy 99, no. 3 (1991): 483–499. The impact of changing transportation costs is further developed in Krugman and Anthony J. Venables, “Globalization and the Inequality of Nations,” Quarterly Journal of Economics 110, no. 4 (1995): 857–880, and in Masahisa Fujita, Paul Krugman, and Anthony J. Venables, The Spatial Economy: Cities, Regions, and International Trade (Cambridge, MA, 1999).
16. David Hummels, “Have International Transportation Costs Declined?” Working Paper, University of Chicago Graduate School of Business, 1999, and the International Monetary Fund, World Economic Outlook, September 2002, p. 116, contend that the cost of sea freight has not fallen significantly in recent decades. James E. Anderson and Eric van Wincoop, “Trade Costs,” Journal of Economic Literature 42 (September 2004): 691 751, and Céline Carrere and Maurice Schiff, “On the Geography of Trade: Distance Is Alive and Well,” World Bank Policy Research Working Paper 3206, February 2004, are among those arguing the continued significance of transport costs in determining trade flows. David Coe and three coauthors offer a technical critique