
handle: 10419/113141 , 10419/89746
Is there an economic justification for why technical change is by assumption labor-augmenting in dynamic macroeconomics? The literature on the endogenous choice of capital- and labor-augmenting technical change finds that technical change is purely labor-augmenting in steady state. The present paper shows that this finding is mainly an artifact of the underlying mathematical models. To make this point, Uzawa's steady-state growth theorem is generalized to a neoclassical economy that, besides consumption and capital accumulation, uses current output to create technical progress or to manufacture intermediates. The generalized steady-state growth theorem is shown to encompass four models of endogenous capital- and labor-augmenting technical change and the typical model of the induced innovations literature of the 1960s.
O10, ddc:330, O40, steady-state growth, Steady-State Growth, Capital Accumulation, Uzawa’s Theorem, Endogenous Direction of Technical Change, capital accumulation, endogenous direction of technical change, steady-state growth, capital accumulation, Uzawa’s Theorem, endogenous direction of technical change, Uzawa's Theorem, E10, jel: jel:E10, jel: jel:O40, jel: jel:O10
O10, ddc:330, O40, steady-state growth, Steady-State Growth, Capital Accumulation, Uzawa’s Theorem, Endogenous Direction of Technical Change, capital accumulation, endogenous direction of technical change, steady-state growth, capital accumulation, Uzawa’s Theorem, endogenous direction of technical change, Uzawa's Theorem, E10, jel: jel:E10, jel: jel:O40, jel: jel:O10
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