References of "Irmen, Andreas 50002026"
     in
Bookmark and Share    
Full Text
See detailLes sociétés vieillissantes sont-elles favorables aux idées nouvelles?
Irmen, Andreas UL; Litina, Anastasia UL

Article for general public (2015)

Detailed reference viewed: 80 (2 UL)
Peer Reviewed
See detailA Generalized Steady-State Growth Theorem
Irmen, Andreas UL

Scientific Conference (2015)

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 three recent growth models that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen (2013), Acemoglu (2003), and Acemoglu (2009), Chapter 15. The reduced form of these models is shown to be consistent with the generalized steady-state growth theorem. [less ▲]

Detailed reference viewed: 118 (2 UL)
Peer Reviewed
See detailEndogenous Capital- and Labor-Augmenting Technical Change in the Neoclassical Growth Model
Irmen, Andreas UL

Scientific Conference (2015)

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 develop a novel 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. 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 ▲]

Detailed reference viewed: 131 (7 UL)
Peer Reviewed
See detailA Generalized Steady-State Growth Theorem
Irmen, Andreas UL

Scientific Conference (2015)

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 three recent growth models that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen (2013), Acemoglu (2003), and Acemoglu (2009), Chapter 15. The reduced form of these models is shown to be consistent with the generalized steady-state growth theorem. [less ▲]

Detailed reference viewed: 123 (2 UL)
Full Text
See detailEndogenous Capital- and Labor-Augmenting Technical Change in the Neoclassical Growth Model
Irmen, Andreas UL; Tabakovic, Amer UL

E-print/Working paper (2015)

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 develop a novel 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. 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 ▲]

Detailed reference viewed: 158 (24 UL)
Full Text
See detailEssential Inputs and Unbounded Output: an Alternative Characterization of the Neoclassical Production Function
Irmen, Andreas UL; Maußner, Alfred

E-print/Working paper (2014)

The Inada (1963) conditions constitute a defining property of the neoclassical production function with capital and labor as arguments. Are these conditions justifiable on economic grounds? Yes, they are ... [more ▼]

The Inada (1963) conditions constitute a defining property of the neoclassical production function with capital and labor as arguments. Are these conditions justifiable on economic grounds? Yes, they are: we show that a production function with positive, yet diminishing marginal products and constant returns to scale satisfies 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. Moreover, we establish that the marginal product of capital vanishes as capital goes to infinity if labor is an essential input. Given the intuitive appeal of the latter feature, we conclude that the neoclassical growth model is a theory of eventual stagnation. [less ▲]

Detailed reference viewed: 94 (8 UL)
See detailThe Past and the Future of Economic Growth
Irmen, Andreas UL

Presentation (2014, October 28)

The world’s economic history has largely been a history of stagnation. The phase of sustained growth was only ignited in the second half of the 18th century by the Industrial Revolution in Britain. Since ... [more ▼]

The world’s economic history has largely been a history of stagnation. The phase of sustained growth was only ignited in the second half of the 18th century by the Industrial Revolution in Britain. Since then, many countries have experienced long periods of sustained growth of per-capita income. At the same time, the world income distribution has become more and more unequal. Today per-capita incomes in the richest countries are approximately 30 times higher than in the poorest countries. The first part of this lecture takes a closer look at these past developments. In the second part, we venture a look forward. Among the questions we will address are the following: - Who needs economic growth? Does economic growth imply happiness? Is economic growth necessary to maintain our current standard of living? Does economic growth help the welfare state in the face of population aging and tight public budgets? - Can the process of sustained economic growth go on? Is “no-growth” or even “degrowth” a reasonable option? Does the concept of sustainable growth help to answer these questions? - What are the main challenges for and what are the main obstacles to growth today? [less ▲]

Detailed reference viewed: 127 (5 UL)
Peer Reviewed
See detailGeneralized Steady-State Growth Theorem
Irmen, Andreas UL

Scientific Conference (2014, August)

Detailed reference viewed: 114 (2 UL)
Full Text
Peer Reviewed
See detailPopulation Aging and Innovation Do Old Societies Think New Ideas?
Litina, Anastasia UL; Irmen, Andreas UL

Scientific Conference (2014, July 26)

This research advances the hypothesis that at the individual level "old people think old ideas" whereas at the aggregate level "old societies think new ideas." More precisely, we empirically establish the ... [more ▼]

This research advances the hypothesis that at the individual level "old people think old ideas" whereas at the aggregate level "old societies think new ideas." More precisely, we empirically establish the following three hypotheses: i) population aging has a hump-shaped effect on innovation, ii) old societies think new ideas, and iii) the effect of population aging on innovation operates partly through a favorable attitude towards new ideas and creativity. Our results falsify the often encountered vision according to which old societies think old ideas. Moreover they emphasize that innovation activity in aging societies is in part driven by cultural attitudes. [less ▲]

Detailed reference viewed: 137 (9 UL)
Peer Reviewed
See detailCapital- and Labor-Saving Technical Change in an Aging Economy
Irmen, Andreas UL

Scientific Conference (2014, April)

Detailed reference viewed: 91 (1 UL)
See detailCapital- and Labor-Saving Technical Change in an Aging Economy
Irmen, Andreas UL

Presentation (2014, March)

Detailed reference viewed: 127 (4 UL)
Full Text
Peer Reviewed
See detailReal Factor Prices and Factor-Augmenting Technical Change
Irmen, Andreas UL

in The B.E. Journal of Macroeconomics (2014), 14(1)

How does technical change affect real factor prices? This paper gives a comprehensive answer for the most important benchmark used in the modern debate: technical change is factor-augmenting and ... [more ▼]

How does technical change affect real factor prices? This paper gives a comprehensive answer for the most important benchmark used in the modern debate: technical change is factor-augmenting and materializes in a neoclassical economy with competitive firms equipped with a constant elasticity of substitution (CES) production function. I establish that the effect of labor-augmenting technical change crucially hinges on whether the economy’s capital endowment exceeds or falls short of its amount of efficient labor. This distinction determines the sign of the effect for sufficiently small values of the elasticity of substitution. In the former case, labor-augmenting technical progress must increase the equilibrium wage. In the latter case the equilibrium wage is reduced. In both cases, technical progress increases the price of capital. Overall, the analysis stresses that not only the elasticity of substitution but also the degree of diminishing returns, the distribution parameters of the CES, and the level of the efficient capital intensity matter for the effect of labor-augmenting technical change on real factor prices. Mutatis mutandis, these considerations carry over to the case of capital-augmenting technical change. [less ▲]

Detailed reference viewed: 152 (7 UL)
Full Text
Peer Reviewed
See detailPopulation, Pensions, and Endogenous Economic Growth
Irmen, Andreas UL; Heer, Burkhard

in Journal of Economic Dynamics and Control (2014), 46

We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme ... [more ▼]

We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor productivity are more profitable. We incorporate this channel in a new dynamic general equilibrium model with endogenous economic growth and heterogeneous overlapping generations. We calibrate the model for the US economy and obtain the following results. First, the effect of a decline in population growth on labor productivity growth is positive and quantitatively significant. In our benchmark, it is predicted to increase from an average annual growth rate of 1.74% over 1990–2000 to 2.41% in 2100. Second, institutional characteristics of the pension system matter both for the growth performance and for individual welfare. Third, the assessment of pension reform proposals may depend on whether economic growth is endogenous or exogenous. [less ▲]

Detailed reference viewed: 194 (5 UL)
Full Text
Peer Reviewed
See detailProperty Rights, Public Enforcement, and Growth
Irmen, Andreas UL; Kuehnel, Johanna

in Scandinavian Journal of Economics (2014), 116

We study the link between public enforcement of property rights, innovation investments, and economic growth in an endogenous growth framework with an expanding set of product varieties. We find that a ... [more ▼]

We study the link between public enforcement of property rights, innovation investments, and economic growth in an endogenous growth framework with an expanding set of product varieties. We find that a government may assure positive equilibrium growth through public employment in the enforcement of property rights, if the economic environment is sufficiently favorable to growth and/or public enforcement is sufficiently effective. However, in terms of welfare an equilibrium path without property rights protection and growth might be preferable. In this case the enforcement of property rights involves too much reallocation of labor from production and research towards the public sector. [less ▲]

Detailed reference viewed: 125 (2 UL)
Full Text
Peer Reviewed
See detailAdjustment costs in a variant of Uzawa's steady-state growth theorem
Irmen, Andreas UL

in Economics Bulletin (2013)

Uzawa's theorem (Uzawa (1961)) is extended to allow for adjustment costs in the process of capital accumulation. A new steady-state growth theorem with adjustment costs establishes that capital-augmenting ... [more ▼]

Uzawa's theorem (Uzawa (1961)) is extended to allow for adjustment costs in the process of capital accumulation. A new steady-state growth theorem with adjustment costs establishes that capital-augmenting technical change may arise in steady state. This is in sharp contrast to Uzawa's original finding. In a growing economy this possibility arises since diminishing returns in the production of capital cause a gap between the growth of gross capital investments and the growth of capital. In steady state, capital-augmenting technical change has the role to fill this gap. The discussion of the new theorem characterizes the conditions under which a steady-state path with capital-augmenting technical change exists. [less ▲]

Detailed reference viewed: 222 (121 UL)
See detailPopulation, Pensions, and Endogenous Economic Growth
Heer, Burkhard; Irmen, Andreas UL

E-print/Working paper (2013)

We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme ... [more ▼]

We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor productivity are more profitable. We incorporate this channel in a new dynamic general equilibrium model with endogenous economic growth and heterogeneous overlapping generations. We calibrate the model for the US economy and obtain the following results. First, the effect of a decline in population growth on labor productivity growth is positive and quantitatively significant. In our benchmark, it is predicted to increase from an average annual growth rate of 1.74% over 1990-2000 to 2.41% in 2100. Second, institutional characteristics of the pension system matter both for the growth performance and for individual welfare. Third, the assessment of pension reform proposals may depend on whether economic growth is endogenous or exogenous. [less ▲]

Detailed reference viewed: 146 (4 UL)
Full Text
See detailA Generalized Steady-State Growth Theorem
Irmen, Andreas UL

E-print/Working paper (2013)

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 three recent growth models that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen (2013), Acemoglu (2003), and Acemoglu (2009), Chapter 15. The reduced form of these models is shown to be consistent with the generalized steady-state growth theorem. [less ▲]

Detailed reference viewed: 128 (8 UL)
Full Text
See detailCapital- and Labor-Saving Technical Change in an Aging Economy
Irmen, Andreas UL

E-print/Working paper (2013)

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. The short-run analysis reveals that population aging induces more labor- and less capital-saving technical change as it increases the relative scarcity of labor with respect to capital. Due to external contemporaneous knowledge spill-overs across innovating firms induced technical change has a first-order effect on current aggregate income. In the long-run capitalsaving technical progress vanishes, and the economy’s growth rate reflects only labor-saving technical change. However, 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 ▲]

Detailed reference viewed: 150 (3 UL)
Full Text
See detailWie Glücklich ist das Land? Zum Zusammenhang von Geld und Glück
Irmen, Andreas UL; Tabakovic, Amer

Article for general public (2012)

Detailed reference viewed: 324 (10 UL)