The "embodiment" controversy between Jorgenson and Solow in the 1960s centered on the importance of capital-embodied technological change. It technological change is "disembodied", it affects output growth independently of capital accumulation. In contrast, "embodied" technological change requires investment in order to affect output. Hence, diagnostics about the relative importance of the two forms of technological change is crucial for learning about the transmission mechanism of technological progress to output growth.
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Paper provided by Tel Aviv - the Sackler Institute of Economic Studies in its series Papers with number
9-97.
Length: 8 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:teavsa:9-97
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Find related papers by JEL classification: O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
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