A Proof of the Invalidity of Proposition 15.12 in Acemoglu(2009)

Li, Defu (2016): A Proof of the Invalidity of Proposition 15.12 in Acemoglu(2009).

Abstract

This note proves that unless the amount of scientists S= s_K/η_L , the proposition 15.12 in Acemoglu (2009) does not hold. Because this is an extremely restrictive requirement, it is not suitable as a proof of why the technological progress must be labor-augmenting on the BGP.

• Item Type: MPRA Paper
• Language: English
• Keywords: Acemoglu(2009), direction of technical change, Uzawa’s steady-state theorem
• Subjects: 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

References

1.Acemoglu, Daron, 2002, “Directed Technical Change.” Review of Economic Studies 69: 781–809.

2.Acemoglu, Daron, 2003, “Labor- and Capital-Augmenting Technical Change,” Journal of European Economic Association, Vol.1 (1), pp. 1-37.

3.Acemoglu, Daron, 2009, Introduction to Modern Economic Growth, Princeton University Press.

4.Defu, Li and Benjamin Bental, 2016, “what determines the direction of technological progress?” working paper.