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Technical Change in Alternative Theories of Growth

Author

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  • Luca Zamparelli

    (Department of Social and Economic Sciences, Sapienza University of Rome, Italy)

Abstract

This paper investigates alternative ways of introducing technological progress in heterodox theories of economic growth. We model technical change as: i) exogenous and costless; ii) a positive externality of capital accumulation, the wage share or the employment rate; iii) endogenous and costly. We implement these formalizations in Classical growth theories, where investments coincide with full capacity savings, and Keynesian theories where capital accumulation is demand constrained. We also distinguish between abundant and inelastic labor market closures. We discuss the outcomes of these models in terms of long-run growth, functional income distribution and employment.

Suggested Citation

  • Luca Zamparelli, 2024. "Technical Change in Alternative Theories of Growth," Working Papers 2404, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:2404
    as

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    File URL: http://www.economicpolicyresearch.org/econ/2024/NSSR_WP_042024.pdf
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    References listed on IDEAS

    as
    1. Marc Lavoie, 2006. "A Post‐Keynesian Amendment To The New Consensus On Monetary Policy," Metroeconomica, Wiley Blackwell, vol. 57(2), pages 165-192, May.
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    More about this item

    Keywords

    Technical change; heterodox growth models; R&D; factor income shares; employment;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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