Recipes and Economic Growth: A Combinatorial March Down an Exponential Tail

S-Tier
Journal: Journal of Political Economy
Year: 2023
Volume: 131
Issue: 8
Pages: 1994 - 2031

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

As Romer and Weitzman emphasized in the 1990s, new ideas are often combinations of existing ideas, an insight absent from recent models. In Kortum's research around the same time, ideas are draws from a probability distribution, and Pareto distributions play a crucial role. Why are combinations missing, and do we really need such strong distributional assumptions to get exponential growth? This paper demonstrates that combinatorially growing draws from standard thin-tailed distributions lead to exponential growth; Pareto is not required. More generally, it presents a theorem linking the max extreme value to the number of draws and the shape of the upper tail for probability distributions.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/723631
Journal Field
General
Author Count
1
Added to Database
2026-01-25