Advanced Search
MyIDEAS: Login to save this paper or follow this series

Biased technological change, human capital and factor shares

Contents:

Author Info

  • Hernando Zuleta

    ()

Abstract

We propose a one-good model where technological change is factor saving andcostly. We consider a production function with two reproducible factors: physical capital and human capital, and one not reproducible factor. The main predictions of the model are the following: (a) The elasticity of output with respect to the reproducible factors depends on the factor abundance of the economies. (b) The income share of reproducible factors increases with the stage of development. (c) Depending on the initial conditions, in some economies the production function converges to AK, while in other economies long-run growth is zero. (d) The share of human factors (raw labor and human capital) converges to a positive number lower than one. Along the transition it may decrease, increase or remain constant.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.urosario.edu.co/FASE1/economia/documentos/pdf/dt17.pdf
Download Restriction: no

Bibliographic Info

Paper provided by UNIVERSIDAD DEL ROSARIO in its series DOCUMENTOS DE TRABAJO with number 004380.

as in new window
Length: 29
Date of creation: 25 Apr 2007
Date of revision:
Handle: RePEc:col:000092:004380

Contact details of provider:

Related research

Keywords: endogenous growth; human capital; factor using and factor savinginnovations; factor income shares;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Steve Ambler & Emanuela Cardia, 1998. "The Cyclical Behaviour of Wages and Profits under Imperfect Competition," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 31(1), pages 148-164, February.
  2. Duffy, John & Papageorgiou, Chris, 2000. " A Cross-Country Empirical Investigation of the Aggregate Production Function Specification," Journal of Economic Growth, Springer, Springer, vol. 5(1), pages 87-120, March.
  3. Michele Boldrin & Michael Horvath, 1994. "Labor Contracts and Business Cycles," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1068, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, Econometric Society, vol. 68(5), pages 1029-1054, September.
  5. Emmanuel M. Drandakis & Edmond S. Phelps, 1965. "A Model of Induced Invention, Growth and Distribution," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 186, Cowles Foundation for Research in Economics, Yale University.
  6. Alan B. Krueger, 1999. "Measuring Labor's Share," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 45-51, May.
  7. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
  8. Pietro Peretto & John J. Seater, 2006. "Augmentation or Elimination?," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c011_060, DEGIT, Dynamics, Economic Growth, and International Trade.
  9. Gomme, Paul & Greenwood, Jeremy, 1995. "On the cyclical allocation of risk," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 19(1-2), pages 91-124.
  10. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
  11. Zeira, Joseph, 1995. "Workers, Machines and Economic Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1139, C.E.P.R. Discussion Papers.
  12. Young, Alwyn, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 641-80, August.
  13. Bertola, Giuseppe, 1991. "Factor Shares and Savings In Endogenous Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 576, C.E.P.R. Discussion Papers.
  14. Hernando Zuleta, 2008. "Factor Saving Innovations and Factor Income Shares," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 836-851, October.
  15. Bentollia, S. & Saint-Paul, G., 1999. "Explaining Movements in the Labor Share," Papers, Centro de Estudios Monetarios Y Financieros- 9905, Centro de Estudios Monetarios Y Financieros-.
  16. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 11(2), pages 21-40, Spring.
  17. Joseph Zeira, 2006. "Machines as Engines of Growth," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c011_059, DEGIT, Dynamics, Economic Growth, and International Trade.
  18. Michele Boldrin & David K. Levine, 2002. "Factor saving innovation," Staff Report, Federal Reserve Bank of Minneapolis 301, Federal Reserve Bank of Minneapolis.
  19. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers, Department of Economics, Williams College 2001-11, Department of Economics, Williams College.
  20. Young, Andrew T., 2010. "One of the things we know that ain't so: Is US labor's share relatively stable?," Journal of Macroeconomics, Elsevier, Elsevier, vol. 32(1), pages 90-102, March.
  21. Rhee, Changyong, 1991. "Dynamic Inefficiency in an Economy with Land," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(4), pages 791-97, July.
  22. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, American Economic Association, vol. 92(4), pages 1205-1217, September.
  23. Hernando Zuleta & Andrew T. Young, 2006. "Labor's Shares – Aggregate and Industry:Accounting for Both in a Model of Development with Induced Innovation," 2006 Meeting Papers, Society for Economic Dynamics 112, Society for Economic Dynamics.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hernando Zuleta, 2007. "Biased innovations in the Harrod-Domar model," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:col:000092:004380. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicaciones Economía).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.