Reference : Endogenous Task-Based Technical Change - Factor Scarcity and Factor Prices -
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Business & economic sciences : Macroeconomics & monetary economics
Endogenous Task-Based Technical Change - Factor Scarcity and Factor Prices -
Irmen, Andreas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM) >]
DEM Discussion Paper 11-2020, University of Luxembourg, and CESifo Working Paper No. 8215, April 2020
[en] economic growth ; endogenous technical change ; direction of technical change ; biased technology
[en] This paper develops a static model of endogenous task-based technical progress to study how
factor scarcity induces technological progress and changes in factor prices. The equilibrium
technology is multi-dimensional and not strongly factor-saving in the sense of Acemoglu (2010).
Nevertheless, labor scarcity induces labor productivity growth. There is a weak but no strong
absolute equilibrium bias. This model provides a plausible interpretation of the famous contention
of Hicks (1932) about the role of factor prices and factor endowments for induced innovations. It
may serve as a micro-foundation for canonical macro-economic models. Moreover, it
accommodates features like endogenous factor supplies and a binding minimum wage.
FnR ; FNR11591926 > Andreas Irmen > CGT > Competitive Growth Theory > 01/03/2018 > 30/08/2018 > 2017

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