| 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  [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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