Endogenous Task-Based Technical Change - Factor Scarcity and Factor Prices

Irmen, Andreas

doi:10.18559/ebr.2020.2.6

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Article (Scientific journals)

Endogenous Task-Based Technical Change - Factor Scarcity and Factor Prices

Irmen, Andreas

2020 • In Economics and Business Review, 6, p. 81-118

Peer Reviewed verified by ORBi

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https://hdl.handle.net/10993/52845

DOI
10.18559/ebr.2020.2.6

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Keywords :

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 :

Pages :

81-118

Peer reviewed :

Peer Reviewed verified by ORBi

FnR Project :

FNR11591926 - Competitive Growth Theory, 2017 (01/03/2018-30/08/2018) - Andreas Irmen

Name of the research project :

Competitive Growth Theory-CGT

Funders :

FNR - Fonds National de la Recherche [LU]

Available on ORBilu :

since 22 November 2022

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