[Can the Steady-State Path of Neoclassical Growth Model Embrace Capital-Augmenting Technological Progress?]
AbstractThe celebrated Uzawa(1961) theorem holds that，on the steady-growth path of neoclassical growth model，technological progress must be purely labor-augmenting rather than capital-augmenting，except the special case where the production function takes the form of Cobb-Douglas. With an augmented Ramsey model，however，we prove in this paper that，when investment has adjustment cost which correlates positively with capital-augmenting technology，the steady state growth path can also embrace capital-augmenting technological progress，even if the production function is not Cobb-Douglas. Our conclusions contribute to the study of steady-state condition of neoclassical growth model，and the understanding of the roles of capital and capital-augmenting technology progress in economic growth.
Download InfoIf 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 55044.
Date of creation: Oct 2012
Date of revision:
Uzawa Steady-state Theorem; Capital-Augmenting Technology; Adjustment Cost; Neoclassical Growth Model;
Find related papers by JEL classification:
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
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.:
- Foley, Duncan K & Sidrauski, Miguel, 1970.
"Portfolio Choice, Investment and Growth,"
American Economic Review,
American Economic Association, vol. 60(1), pages 44-63, March.
- Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.