Munich Personal RePEc Archive

Capital Substitution in an Industrial Revolution

Staley, Mark and Berg, Peter (2012): Capital Substitution in an Industrial Revolution.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_40530.pdf

Download (294kB) | Preview

Abstract

A unified growth model is presented in which productivity growth is driven by learning-by-doing. We show that the growth rate of productivity is an increasing function of the share of capital. It is assumed that the industrial sector has a higher capital share than the agricultural sector and that the ability to substitute one output for the other slowly rises over time. Two distinct regimes of constant growth emerge, connected by a rapid transition in which the growth rates of population and income increase by an order of magnitude, indicative of simultaneous agricultural and industrial revolutions.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.