A note on balanced growth with a less than unitary elasticity of substitution

Arbeitspapier

We present a simple production technology in which the choice of production technique results in a balanced growth path even in the presence of capital-augmenting technical progress. Given a particular choice of technique, the production function is CES with a less than unitary elasticity of factor substitution. The form of this production technology is also invariant to the choice of units, allowing us to abstract from the normalization considerations that often accompany the use of CES. The approach yields a balanced growth path but short-run time-varying factor shares without requiring an explicit model of the R&D sector.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: School of Economics Discussion Papers ; No. 10,07

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Aggregate Factor Income Distribution ; Technological Change: Choices and Consequences; Diffusion Processes ; Economic Growth and Aggregate Productivity: General
• Thema: balanced growth ; capital-augmenting technical progress ; measurement units ; elasticity of substitution

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): León-Ledesma, Miguel A. ; Satchi, Mathan
• Ereignis: Veröffentlichung
• (wer): University of Kent, School of Economics
• (wo): Canterbury
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/50601
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ