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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2015

Classification and Topics

• 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

Contributors, Places and Time

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

Further information

• DOI: doi:10.5282/ubm/epub.25169
• Handle: http://hdl.handle.net/10419/121764
• URN: urn:nbn:de:bvb:19-epub-25169-7
• Last update: 10.03.2025, 11:41 AM CET