Li, Defu and Huang, Jiuli and Zhou, Ying (2013): Revisting the Steady-State Equilibrium Conditions of Neoclassical Growth Models.
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Abstract
Since the publication of Uzawa(1961), it has been widely accepted that technical change must be purely labor-augmenting for a growth model to exhibit steady-state path. But in this paper, we argue that such a constraint is unnecessary. Further, our model shows that, as long as the sum of the growth rate of marginal efficiency of capital accumulation and the rate of capital-augmenting technological progress equals zero, steady-state growth can be established without constraining the direction of technological change. Thus Uzawa’s theorem represents only a special case, and the explanatory power of growth models would be greatly enhanced if such a constraint is removed.
Item Type: | MPRA Paper |
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Original Title: | Revisting the Steady-State Equilibrium Conditions of Neoclassical Growth Models |
English Title: | Revisting the Steady-State Equilibrium Conditions of Neoclassical Growth Models |
Language: | English |
Keywords: | Neoclassical Growth Model; Uzawa’s Steady-state Growth Theorem; Direction of Technical Change;Adjustment Cost |
Subjects: | E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models |
Item ID: | 55045 |
Depositing User: | Defu Li |
Date Deposited: | 05 Apr 2014 17:54 |
Last Modified: | 28 Sep 2019 04:49 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/55045 |