Reference : Tasks, Technology, and Factor Prices in the Neoclassical Production Sector |
E-prints/Working papers : Already available on another site | |||
Business & economic sciences : Macroeconomics & monetary economics | |||
http://hdl.handle.net/10993/45268 | |||
Tasks, Technology, and Factor Prices in the Neoclassical Production Sector | |
English | |
Irmen, Andreas ![]() | |
2020 | |
CESifo Working Paper No. 8353, June 2020 | |
No | |
[en] technical change ; factor prices ; factor-specific tasks ; neoclassical production | |
[en] This paper introduces tasks into the neoclassical production sector. Competitive firms choose the
profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies. We show that the effect of factor-augmenting technical change on relative and absolute factor prices can be decomposed into a productivity effect and a task-demand effect of opposite sign. These effects appear since the novel task-based approach distinguishes between the demands for tasks and the demands for factors. This perspective provides a new intuition for the emergence of relative and absolute factor biases and the role of the elasticity of substitution. | |
Researchers | |
http://hdl.handle.net/10993/45268 | |
https://ideas.repec.org/a/kap/jeczfn/v131y2020i2d10.1007_s00712-020-00705-9.html |
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