Arbeitspapier

Directed technical change and capital deepening: A reconsideration of Kaldor's technical progress function

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 explains balanced growth in a way that appears less arbitrary than possible explanations in the Solow model, especially because it directly accounts for Harrod neutral technical change, without any need for further assumptions. It complements the current neoclassical and AK models by offering a further perspective for interpreting economic growth.

Language
Englisch

Bibliographic citation
Series: Munich Discussion Paper ; No. 2015

Classification
Wirtschaft
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
Economic Growth and Aggregate Productivity: General
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
General Aggregative Models: Neoclassical
Aggregate Factor Income Distribution
History of Economic Thought: Individuals
Current Heterodox Approaches: Other
Subject
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
overdetermination

Event
Geistige Schöpfung
(who)
Schlicht, Ekkehart
Event
Veröffentlichung
(who)
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
(where)
München
(when)
2015

DOI
doi:10.5282/ubm/epub.25169
Handle
URN
urn:nbn:de:bvb:19-epub-25169-7
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schlicht, Ekkehart
  • Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät

Time of origin

  • 2015

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