Reference : A Generalized Steady-State Growth Theorem
Scientific journals : Article
Business & economic sciences : Macroeconomics & monetary economics
Sustainable Development
http://hdl.handle.net/10993/30656
A Generalized Steady-State Growth Theorem
English
Irmen, Andreas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
2017
Macroeconomic Dynamics
Cambridge University Press
Yes (verified by ORBilu)
International
1365-1005
1469-8056
[en] Steady-State Growth ; Capital Accumulation ; Uzawa’s Theorem ; Endogenous Direction of Technical Change
[en] Is there an economic justification for why technical change is by assumption
labor-augmenting in Dynamic Macroeconomics? The literature on the
endogenous choice of capital- and labor-augmenting technical change finds that
technical change is purely labor-augmenting in steady state. The present paper
shows that this finding is mainly an artefact of the underlying mathematical models.
To make this point Uzawa’s steady-state growth theorem (Uzawa (1961)) is
generalized to a neoclassical economy that, besides consumption and capital accumulation,
uses current output to create technical progress or to manufacture
intermediates. The generalized steady-state growth theorem is shown to encompass
four models of endogenous capital- and labor-augmenting technical change,
namely, Irmen and Tabakovic (2015), Acemoglu (2003), Acemoglu (2009), Chapter
15, and the typical model of the induced innovations literature of the 1960s.
Researchers ; Students
http://hdl.handle.net/10993/30656

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