A Generalized Steady-State Growth Theorem

Konferenzbeitrag

Uzawa s steady-state growth theorem (Uzawa (1961)) is generalized to a neoclassical economy that uses current output, e.g., to create technical progress or to manufacture intermediates. The difference between aggregate final-good production and these resources is referred to as net output. The new generalized steady-state growth theorem holds since net output exhibits constant returns to scale in capital and labor. This insight provides an understanding for why technical change is labor-augmenting in steady state even if capital-augmenting technical change is feasible. By example, this point is made for four growth models that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen and Tabakovic (2015), Acemoglu (2003), Acemoglu (2009), Chapter 15, and for the typical model of the induced innovations literature of the 1960s. The reduced form of these models is shown to be consistent with the generalized steady-state growth theorem.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Growth ; No. A01-V1

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: General ; Economic Development: General ; Economic Growth and Aggregate Productivity: General

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Irmen, Andreas
• Event: Veröffentlichung
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/113141
• Last update: 10.03.2025, 11:42 AM CET