caa a22 4500 397544774 CHVBK 20180308164736.0 cr unu---uuuuu 161202e199604 xx s 000 0 eng 10.2307/2297854 doi (NATIONALLICENCE)oxford-10.2307/2297854 Vested Interests in a Positive Theory of Stagnation and Growth [Elektronische Daten] [Per Krusell, José-Víctor Ríos-Rull] We study a positive theory of stagnation and growth aimed at understanding the large variations in growth outcomes across actual economies. The theory points to the fundamental role played by vested interests in determining policies which are key to the growth process: some agents seek to prevent the adoption of new technologies. We develop a model of technology adoption, and show how technological innovation may sow the seeds of its own destruction. In particular, we find that the equilibrium is characterized by a long cycle of stagnation and growth. Over this cycle, incumbent innovators have sufficient political influence that new technologies are prohibited, and only as these incumbents are phased out of the economy will new innovation occur. In formalizing our theory we make a methodological contribution by characterizing dynamic voting equilibria in which voters must forecast the effects of different current policies on future prices and policy outcomes. © 1996 The Review of Economic Studies Limited Krusell Per University of Rochester aut Ríos-Rull José-Víctor University of Pennsylvania and Federal Reserve Bank of Minneapolis aut The Review of Economic Studies Wiley-Blackwell 63/2(1996-04), 301-329 0034-6527 63:2<301 1996 63 restud https://doi.org/10.2307/2297854 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.2307/2297854 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Krusell Per University of Rochester aut NATIONALLICENCE 700 1- Ríos-Rull José-Víctor University of Pennsylvania and Federal Reserve Bank of Minneapolis aut NATIONALLICENCE 773 0- The Review of Economic Studies Wiley-Blackwell 63/2(1996-04), 301-329 0034-6527 63:2<301 1996 63 restud Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford