Figure 2
The vertical axis of the line graph is labeled “Welfare” and ranges from 0 to 300 in intervals of 50. The horizontal axis is labeled “q - complexity of tecnolonogical level.” The first marking is at 0, then the axis continues from 0.10 to 0.90 in increments of 0.05. A legend at the bottom shows a solid line represents “Baseline” and the dashed line represents “Lower learning.” The “Baseline” line starts near (0.05, 190), increases with a concave up nature, and peaks at (0.60, 272), then curves downward to end at (0.89, 271). The “Lower learning” dashed line starts at (0.05, 190), follows a similar rise, but remains below the “Baseline” line at all points. The line rises and peaks at (0.54, 242), and then slopes downward to end at (0.90, 203). Note: All the numerical values are approximated.Complexity level of the technology and welfare for two economies with different learning and diffusion parameters. Baseline: K(0) =550; ; and ; Country 3: K´(0) =550; ; and = 0.01