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A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth

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  • Senay Acikgoz
  • Merter Mert

Abstract

This study emphasizes the necessity of the Harrod-neutral identification of technological progress for the models of economic growth, which use Cobb–Douglas production function and which are based on stability. Some of the important studies, which reviewed a balanced growth path or a steady state of the Solow model, assumed the nature of technological progress as Hicks-neutral rather than Harrod-neutral. In this work, we have reminded that Harrod-neutral is a better assumption for the nature of technological progress in such studies.

Suggested Citation

  • Senay Acikgoz & Merter Mert, 2015. "A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth," SAGE Open, , vol. 5(2), pages 21582440155, April.
    • Handle: RePEc:sae:sagope:v:5:y:2015:i:2:p:2158244015579942
    DOI: 10.1177/2158244015579942
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    References listed on IDEAS

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    7. Senay Acikgoz & Merter Mert, 2014. "Sources of Growth Revisited: The Importance of the Nature of Technological Progress," Journal of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 31-62, May.
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