Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function

Schlicht, Ekkehart (17. March 2014): Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function. Discussion Papers in Economics 2014

Abstract

This note proposes a growth model that is derived from the standard Solow growth model by replacing the neoclassical production function with Kaldor’s technical progress function while maintaining a marginalist theory of factor prices in the spirit suggested by von Weizsäcker (1966, 1966b). The hybrid model so obtained accounts for balanced growth in a way that appears less arbitrary than the Solow model, especially because it directly accounts for Harrod neutral technical change, without any need for further assumptions.

• Item Type: Paper
• Keywords: directed technical change, directed technological change, bias in innovation, technical progress function, neoclassical production function, Harrod neutrality, Hicks neutrality, Cambridge theory of distribution, marginal productivity theory, Kaldor, Kennedy, von Weizsäcker, Solow model
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Munich Discussion Papers in Economics > Macro-Economics; Economics > Chairs > Chair of Institutional Economics (closed)
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: O30, O40, E12, E13, E25, B59, B31
• Language: English

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