Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

On Technical Progress and the Speed of Adjustment

Authors: Lansing, Richard M;

On Technical Progress and the Speed of Adjustment

Abstract

This paper contends that greater embodiment of technical progress need not always lead to faster adjustment given an initial disequilibrium within a neoclassical growth model. Furthermore it is suggested that changes in the mean age of the capital stock over time may provide a means for reconciling an apparent paradox relating to the question of adjustment time. The paradox arises from the fact that the mathematics of the long run indicates that embodied and disembodied models will close a given disequilibrium in the same period of time even though the embodied model will presumably always have a higher initial growth rate. In an article by K. Sato (1966) dealing with the question of adjustment time in neoclassical growth models it was concluded that the "adjustment process is completed in a shorter period of time if . . . technical improvements are more embodied rather than disembodied". The position taken here is that Sato's result is a special case rather than the general case as suggested by his article. It should be noted that nlo exception is taken with respect to his formal analysis. Sato (1966) develops the vintage neoclassical growth model made familiar by Solow (1960). Assuming a Cobb-Douglas production function, and denoting the rates of embodied and disembodied technical change as A and y respectively, the following expression is obtained:

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!