Li, Defu and Bental, Benjamin (2019): A Generalized Growth Model and the Direction of Technological Progress.

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Abstract
Based on a general growth model, this paper finds that the steadystate direction of technological progress is determined by the scale return of the production function and the relative factor supply elasticities. A specific version of that model extends Acemoglu (2002) to provide the underlying determinants of the supply elasticities and demonstrates that the relative price (Hicks, 1932) and relative market size (Acemoglu, 2002) have only a shortterm impact on the direction of technological progress. A consequence of the analysis is that the steadystate technological progress is purely laboraugmenting (i.e. delivers Uzawa’s steadystate theorem) if and only if the scale return of the production function is constant and the supply elasticity of capital is infinite. Analogously, an infinite labor supply elasticity is required if laboraugmenting technological progress is to be excluded prior to the Industrial Revolution. Accordingly, changing factor supply elasticities may have induced the Industrial Revolution.
Item Type:  MPRA Paper 

Original Title:  A Generalized Growth Model and the Direction of Technological Progress 
English Title:  A Generalized Growth Model and the Direction of Technological Progress 
Language:  English 
Keywords:  Economic Growth, Direction of Technological Progress, Returns to Scale, Factor Supply Elasticities, Uzawa’s SteadyState Theorem, Industrial Revolution 
Subjects:  E  Macroeconomics and Monetary Economics > E1  General Aggregative Models > E13  Neoclassical E  Macroeconomics and Monetary Economics > E2  Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E25  Aggregate Factor Income Distribution 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:  96509 
Depositing User:  Defu Li 
Date Deposited:  15 Oct 2019 07:13 
Last Modified:  15 Oct 2019 07:13 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/96509 