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

• Autorzy: Andreas Irmen
• Języki publikacji: EN

Abstrakty

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. (original abstract)

Słowa kluczowe

EN

Economic growth; Endogenous growth; Endogenous variable; Technology; Technological change

PL

Wzrost gospodarczy; Wzrost endogeniczny; Zmienna objaśniana; Technologia; Zmiany technologiczne

• Czasopismo: Economics and Business Review
• Rocznik: 2020
• Tom: 6 (20)
• Numer: nr 2
• Strony: 81--118

Twórcy

autor

Andreas Irmen

• University of Luxembourg, Luxembourg

Bibliografia

• Acemoglu, D. (2003). Labor- and capital-augmenting technical change. Journal of the European Economic Association, 1(1), 1-37.
• Acemoglu, D. (2007). Equilibrium bias of technology. Econometrica, 75(5), 1371-1410.
• Acemoglu, D. (2010). When does labor scarcity encourage innovation?. Journal of Political Economy, 118(6), 1037-1078.
• Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323-351.
• Allen, R. C. (2009). The British industrial revolution in global perspective. Cambridge: Cambridge University Press.
• Broadberry, S., & Gupta, B. (2009). Lancashire, India, and shifting competitive advantage in cotton textiles, 1700-1850: The neglected role of factor prices. Economic History Review, 62, 279-305.
• Burmeister, E., & Dobell, R. A. (1970). Mathematical theories of economic growth. London: Collier-Macmillan.
• Champernowne, D. G. (1961). A dynamic growth model involving a production function. In F. A. Lutz, & D. C. Hague (Eds.), The theory of capital-Proceedings of a conference held by the International Economic Association (pp. 223-244). London: MacMillan.
• Drandakis, E. M., & Phelps, E. S. (1966). A model of induced invention, growth, and distribution. The Economic Journal, 76, 823-840.
• Elvin, M. (1972). The high-level equilibrium trap: The causes of the decline of the invention in traditional Chines textile industries. In W. E. Willmott (Ed.), Economic organization in Chinese society (pp. 137-172). Stanford: Stanford University Press.
• Fellner, W. (1961). Two propositions in the theory of induced innovations. The Economic Journal, 71, 305-308.
• Funk, P. (2002). Induced innovation revisited. Economica, 69, 155-171.
• Grossman, G. M., & Helpman, E. (1991). Innovation and growth in the global economy. Cambridge, MA: MIT Press.
• Growiec, J. (2013). A microfoundation for normalized CES production functions with factor-augmenting technical change. Journal of Economic Dynamics and Control, 37(11), 2336-2350.
• Growiec, J. (2018). Factor-specific technology choice. Journal of Mathematical Economics, 77(C), 1-14.
• Habakkuk, J. (1962). American and British technology in the nineteenth century: Search for labor-saving inventions. Cambridge: Cambridge University Press.
• Hellwig, M., & Irmen, A. (2001a). Endogenous technical change in a competitive economy. Journal of Economic Theory, 101, 1-39.
• Hellwig, M., & Irmen, A. (2001b). Wage growth, productivity growth, and the evolution of employment. (Center for Economic Policy Research (CEPR), Discussion Paper, No. 2927).
• Hicks, J. R. (1932). The theory of wages. London: Macmillan.
• Irmen, A. (2011). Steady-state growth and the elasticity of substitution. Journal of Economic Dynamics and Control, 35(8), 1215-1228.
• Irmen, A. (2014). Real factor prices and factor-augmenting technical change. The B.E. Journal of Macroeconomics, 14(1), 1-27.
• Irmen, A. (2017). Capital- and labor-saving technical change in an aging economy. International Economic Review, 58(1), 261-285.
• Irmen, A. (2018). A generalized steady-state growth theorem. Macroeconomic Dynamics, 22, 779-804.
• Irmen, A., & Tabaković, A. (2017). Endogenous capital- and labor-augmenting technical change in the neoclassical growth model. Journal of Economic Theory, 170, 346-384.
• Jones, C. I. (2005). The shape of production functions and the direction of technical change. The Quarterly Journal of Economics, 120(2), 517-549.
• Kennedy, C. (1964). Induced bias in innovation and the theory of distribution. The Economic Journal, 74, 541-547.
• Leon-Ledesma, M. A., & Satchi, M. (2019). Appropriate technology and balanced growth. Review of Economic Studies, 86(2), 807-835.
• Nordhaus, W. D. (1973). Some sceptical notes thoughts on the theory of induced innovation. Quarterly Journal of Economics, 87(2), 208-219.
• Rivera-Batiz, L. A., & Romer, P. M. (1991). Economic integration and endogenous growth. Quarterly Journal of Economics, 106, 531-555.
• Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71-S102.
• Salter, W. E. (1966). Productivity and technical change (2nd ed.). Cambridge: Cambridge University Press.
• Samuelson, P. A. (1960). The rate of profit in a growing economy. The Economic Journal, 73, 665-674.
• Samuelson, P. (1965). A theory of induced innovation along Kennedy-Weizsacker lines. Review of Economics and Statistics, 47(3), 343-356.
• Segerstrom, P. S., Anant, T. C. A., & Dinopoulos, E. (1990). A Schumpeterian model of the product life cycle. American Economic Review, 80, 1077-1092.
• Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94.
• Swan, T. W. (1956). Economic growth and capital accumulation. Economic Record, 32, 334-361.
• von Weizsacker, C. C. (1962). A new technical progress function. German Economic Review, 11, 248-265.
• von Weizsacker, C. C. (1966). Tentative notes on a two-sector model with induced technical progress. Review of Economics Studies, 33(3), 245-252.
• Zeira, J. (1998). Workers, machines, and economic growth. Quarterly Journal of Economics, 113(4), 1091-1117.

Identyfikatory

DOI

10.18559/ebr.2020.2.6