References of "Irmen, Andreas 50002026"
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See detailTASKS, TECHNOLOGY, AND FACTOR PRICES IN THE NEOCLASSICAL PRODUCTION SECTOR
Irmen, Andreas UL

E-print/Working paper (2018)

This paper introduces tasks into the neoclassical production sector. Competitive firms choose the profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies ... [more ▼]

This paper introduces tasks into the neoclassical production sector. Competitive firms choose the profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies. We show that the effect of factor-augmenting technical change on relative and absolute factor prices can be decomposed into a productivity effect and a market size effect of opposite sign. These effects appear since the novel task-based approach distinguishes between the demands for tasks and the demands for factors. This perspective provides a new intuition for the emergence of relative and absolute factor biases and the role of the elasticity of substitution. [less ▲]

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See detailTechnological Progress, the Supply ofHours Worked, and the Consumption-Leisure Complementarity
Irmen, Andreas UL

Scientific Conference (2018)

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption ... [more ▼]

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available consumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility functions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline. [less ▲]

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See detailA Generalized Steady-State Growth Theorem
Irmen, Andreas UL

in Macroeconomic Dynamics (2018)

Uzawa’s steady-state growth theorem (Uzawa (1961)) is generalized to a neoclassical economy that uses current output, e.g., to create technical progress or to manufacture intermediates. The difference ... [more ▼]

Uzawa’s steady-state growth theorem (Uzawa (1961)) is generalized to a neoclassical economy that uses current output, e.g., to create technical progress or to manufacture intermediates. The difference between aggregate final-good production and these resources is referred to as net output. The new generalized steady-state growth theorem holds since net output exhibits constant returns to scale in capital and labor. This insight provides an understanding for why technical change is labor-augmenting in steady state even if capital-augmenting technical change is feasible. By example, this point is made for four growth mod-els that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen and Tabakovic (2015), Acemoglu (2003), Acemoglu (2009), Chapter 15, and for the typical model of the induced innovations literature of the 1960s.The reduced form of these models is shown to be consistent with the generalizedsteady-state growth theorem. [less ▲]

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See detailEconomic Growth: Past, Present, and Future
Irmen, Andreas UL

Speeches/Talks (2017)

Detailed reference viewed: 118 (3 UL)
See detailSecurity of Financial Systems and Economic Policies
Irmen, Andreas UL

Speeches/Talks (2017)

Detailed reference viewed: 34 (3 UL)
See detailWarum Wirtschaftswachstum gut sein kann
Irmen, Andreas UL

Article for general public (2017)

Detailed reference viewed: 60 (1 UL)
See detailEndogenous Factor Income Distribution - When Piketty meets Romer -
Irmen, Andreas UL

Speeches/Talks (2017)

Detailed reference viewed: 51 (0 UL)
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See detailCapital- and Labor-Saving Technical Change in an Aging Economy
Irmen, Andreas UL

in International Economic Review (2017), 58

Does population aging and the associated increase in the old-age dependency ratio affect economic growth ? The answer is given in a novel analytical framework that allows for population aging to affect ... [more ▼]

Does population aging and the associated increase in the old-age dependency ratio affect economic growth ? The answer is given in a novel analytical framework that allows for population aging to affect endogenous capital- and labor-saving technical change. In steady state capital-saving technical progress vanishes, and the economy’s growth rate of per-capita variables reflects only labor-saving technical change. The mere possibility of capital-saving technical change is shown to imply that the economy’s steady-state growth rate becomes independent of its age structure: neither a higher life-expectancy nor a decline in fertility affects economic growth in the long run. [less ▲]

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See detailTechnological Progress, the Supply of Hours Worked, and the Consumption-Leisure Complementarity
Irmen, Andreas UL

Speeches/Talks (2017)

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption ... [more ▼]

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available con- sumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility func- tions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline. [less ▲]

Detailed reference viewed: 34 (2 UL)
See detailGlobal Economic Growth
Irmen, Andreas UL

Speeches/Talks (2017)

Detailed reference viewed: 44 (1 UL)
See detailWhat a Study of 33 Countries Found about Aging Populations and Innovation
Irmen, Andreas UL; Litina, Anastasia UL

in Harvard Business Review (2017)

Detailed reference viewed: 157 (6 UL)
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See detailA Note on the Characterization of the Neoclassical Production Function
Irmen, Andreas UL

in Macroeconomic Dynamics (2017)

We study production functions with capital and labor as arguments that exhibit positive, yet diminishing marginal products and constant returns to scale. We show that such functions satisfy the Inada ... [more ▼]

We study production functions with capital and labor as arguments that exhibit positive, yet diminishing marginal products and constant returns to scale. We show that such functions satisfy the Inada conditions if (i) both inputs are essential and (ii) an unbounded quantity of either input leads to unbounded output. This allows for an alternative characterization of the neoclassical production function that altogether dispenses with the Inada conditions. Although this proposition generalizes to the case of n > 2 factors of production, its converse does not hold: 2n Inada conditions do not imply that each factor is essential. [less ▲]

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See detailEndogenous Capital- and Labor-Augmenting Technical Change in the Neoclassical Growth Model
Irmen, Andreas UL

in Journal of Economic Theory (2017)

The determinants of the direction of technical change and their implications for economic growth and economic policy are studied in the one-sector neoclassical growth model of Ramsey, Cass, and Koopmans ... [more ▼]

The determinants of the direction of technical change and their implications for economic growth and economic policy are studied in the one-sector neoclassical growth model of Ramsey, Cass, and Koopmans extended to allow for endogenous capital- and labor-augmenting technical change. We build on a recently developed micro-foundation for the competitive production sector that rests on the idea that the fabrication of output requires tasks to be performed by capital and labor (Irmen, 2017). Firms may engage in innovation investments that increase the productivity of capital and labor in the performance of their respective tasks. These investments are associated with new technological knowledge that accumulates over time and sustains long-run growth. We show that the equilibrium allocation is not Pareto-efficient since both forms of technical change give rise to an inter-temporal knowledge externality. An appropriate policy of investment subsidies may implement the efficient allocation. [less ▲]

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See detailA Generalized Steady-State Growth Theorem
Irmen, Andreas UL

in Macroeconomic Dynamics (2017)

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 ... [more ▼]

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. [less ▲]

Detailed reference viewed: 161 (5 UL)
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See detailTechnological progress, the supply of hours worked, and the consumption-leisure complementarity
Irmen, Andreas UL

E-print/Working paper (2017)

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption ... [more ▼]

At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available con- sumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility func- tions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline. [less ▲]

Detailed reference viewed: 64 (9 UL)
See detailWirtschaftswachstum!? - Die Geschichte der Weltwirtschaft in 6 Folien
Irmen, Andreas UL

Speeches/Talks (2016)

Detailed reference viewed: 84 (3 UL)