Big Push Model

Big Push Model

The Big Push Model is a concept in development economics or welfare economics that emphasizes the fact that a 's decision whether to industrialize or not depends on the expectation of what other firms will do. It assumes economies of scale and oligopolistic market structure.

The major contribution the concept of the Big Push were made by Paul Rosenstein-Rodan in 1943 and later on by Murphy, Shleifer and Vishny in 1989. Also some contribution of Matsuyama (1992), Krugman (1991) and Romer (1986) proved to be seminal for later literature on the Big Push.

Analysis of this economic model usually involves using game theory.

References

*P Krugman, 1991: History vs Expectation. "The Quarterly Journal of Economics"
*K Matsuyama, 1992: The market size, Entrepreneurship, and the Big Push. "Stanford"
*KM Murphy, A Shleifer, RW Vishny, 1985: Industrialization and the Big Push. "The Journal of Political Economy"
*D Romer, 1986: Increasing Returns and Long-Run Growth. "The Journal of Political Economy"
*PN Rosenstein-Rodan, 1943: The Problems of Industrialisation of Eastern and South-Eastern Europe. "The Economic journal"

ee also

*list of economics topics


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