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) >]
2018
Macroeconomic Dynamics
Cambridge University Press
Yes (verified by ORBilu)
International
1365-1005
1469-8056
United Kingdom
[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
<br />labor-augmenting in Dynamic Macroeconomics? The literature on the
<br />endogenous choice of capital- and labor-augmenting technical change finds that
<br />technical change is purely labor-augmenting in steady state. The present paper
<br />shows that this finding is mainly an artefact of the underlying mathematical models.
<br />To make this point Uzawa’s steady-state growth theorem (Uzawa (1961)) is
<br />generalized to a neoclassical economy that, besides consumption and capital accumulation,
<br />uses current output to create technical progress or to manufacture
<br />intermediates. The generalized steady-state growth theorem is shown to encompass
<br />four models of endogenous capital- and labor-augmenting technical change,
<br />namely, Irmen and Tabakovic (2015), Acemoglu (2003), Acemoglu (2009), Chapter
<br />15, and the typical model of the induced innovations literature of the 1960s.
Researchers ; Students
http://hdl.handle.net/10993/30656
also: http://hdl.handle.net/10993/39184
10.1017/S1365100516000407
https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/generalized-steadystate-growth-theorem/5CB41659FF356D4ED86F115FB4B7EEF9

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