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 ![]() | |
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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