A Generalized Steady-State Growth Theorem

Irmen, Andreas

doi:10.1017/S1365100516000407

Reference : A Generalized Steady-State Growth Theorem


	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : Macroeconomics & monetary economics
	Focus Areas :	Sustainable Development
	To cite this reference:	http://hdl.handle.net/10993/30656

Title :	A Generalized Steady-State Growth Theorem
Language :	English
Author, co-author :	Irmen, Andreas [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Publication date :	2018
Journal title :	Macroeconomic Dynamics
Publisher :	Cambridge University Press
Peer reviewed :	Yes (verified by ORBi^lu)
Audience :	International
ISSN :	1365-1005
e-ISSN :	1469-8056
Country :	United Kingdom
Keywords :	[en] Steady-State Growth ; Capital Accumulation ; Uzawa’s Theorem ; Endogenous Direction of Technical Change
Abstract :	[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.
Target :	Researchers ; Students
Permalink :	http://hdl.handle.net/10993/30656
	also: http://hdl.handle.net/10993/39184
DOI :	10.1017/S1365100516000407
Other URL :	https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/generalized-steadystate-growth-theorem/5CB41659FF356D4ED86F115FB4B7EEF9

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