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Optimal Investment Specific Technological Progress Allocation in a Two Sector Model

Author

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  • Ricardo Azevedo Araujo

    (University of Brasilia (UnB))

Abstract

In this paper the impact of investment specific technical progress on investment allocation is studied by using an extended version of the Feldman’s two sector model that takes into account embodied technical progress. The aim of the paper is to analyze the impact of investment specific technical progress on the optimal allocation of investment, economic growth and structural change.

Suggested Citation

  • Ricardo Azevedo Araujo, 2009. "Optimal Investment Specific Technological Progress Allocation in a Two Sector Model," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 10(3), pages 457-464.
    • Handle: RePEc:anp:econom:v:10:y:2009:i:3:457_464
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    More about this item

    Keywords

    Investment Allocation; Two Sector Models; Investment Specific Technical Progress;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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