economic growth; endogenous technical change; direction of technical change; biased technology
Abstract :
[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 factorsaving
in the sense of Acemoglu (2010). Nevertheless, labour scarcity induces labour
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 microfoundation for canonical macro-economic models. Moreover, it accommodates
features like endogenous factor supplies and a binding minimum wage.
.
Disciplines :
Macroeconomics & monetary economics
Author, co-author :
Irmen, Andreas ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM)
External co-authors :
yes
Language :
English
Title :
Endogenous Task-Based Technical Change - Factor Scarcity and Factor Prices
Publication date :
2020
Journal title :
Economics and Business Review
ISSN :
2450-0097
Publisher :
Sciendo, Poland
Volume :
6
Pages :
81-118
Peer reviewed :
Peer Reviewed verified by ORBi
FnR Project :
FNR11591926 > Andreas Irmen > CGT > Competitive Growth Theory > 01/03/2018 > 30/08/2018 > 2017
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