Figure 3
The vertical axis of the line graph is labeled “Growth Rate,” and ranges from negative 0.005 to 0.03 in increments of 0.005. The horizontal axis is labeled “Period” and ranges from 0 to 40 in increments of 5. Two lines are shown on the graph. A legend at the bottom indicated that the solid line represents “Economy 1,” and the dashed line represents “Economy 2.” The line for “Economy 1” starts at (0, negative 0.0110), rises with a concave down nature to (19, 0.014), and stays almost constant to end at (40, 0.015). The line for “Economy 2” starts at (0, 0.028), falls with a concave up nature to (10, 0.011), and stays almost constant to end at (40, 0.010). The lines intersect at (10.8, 0.010). Note: All the numerical values are approximated.Output and growth rate for two economies: Economy 1 adopting a more complex technology, but with lower learning; Economy 2 adopting a less complex technology, but with faster learning and diffusion. Parameters: Economy 1: ; Source: Simulated data