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Endogenous Technical Change In Alternative Theories Of Growth And Distribution

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  • Daniele Tavani
  • Luca Zamparelli

Abstract

This paper surveys the last two and a half decades of non†neoclassical literature on endogenous technical change and the functional income distribution. We distinguish between classical†Marxian and post†Keynesian models, and analyze them under three different assumptions on the determinants of technical change: capital accumulation, income distribution, and labor market tightness. The balanced growth implications of alternative models are compared with neoclassical exogenous and endogenous growth theories. Despite the strong differences in the assumptions regarding the substitutability between capital and labor, the role of different classes in society, and whether or not productive factors are fully employed, the various alternative models can be classified in a way that highlights remarkable similarities with their neoclassical counterparts. Both neoclassical and alternative theories of endogenous growth: (i) have shown that long†run growth is sensitive to investment decisions, and (ii) rely on a linear spillover from the stock of knowledge to the production of innovations. The comparison highlights the different channels emphasized by competing theories: saving behavior and market structure in the neoclassical theories, as opposed to income distribution, the state of the labor market, and investors' behavior in alternative theories.

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  • Daniele Tavani & Luca Zamparelli, 2017. "Endogenous Technical Change In Alternative Theories Of Growth And Distribution," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1272-1303, December.
  • Handle: RePEc:bla:jecsur:v:31:y:2017:i:5:p:1272-1303
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    File URL: https://doi.org/10.1111/joes.12220
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    Cited by:

    1. Naqvi, Asjad & Stockhammer, Engelbert, 2018. "Directed Technological Change in a Post-Keynesian Ecological Macromodel," Ecological Economics, Elsevier, vol. 154(C), pages 168-188.
    2. Jonathan F. Cogliano & Roberto Veneziani & Naoki Yoshihara, 2018. "Exploitation, skills, and inequality," Working Paper Series 2018-01, Dickinson College, Department of Economics.
    3. Ricardo A. Araújo & Marwil J. Dávila-Fernández, 2018. "Some new insights on the empirics of Goodwin’s growth-cycle model," Department of Economics University of Siena 790, Department of Economics, University of Siena.
    4. Luke Petach & Daniele Tavani, 2018. "Income shares, secular stagnation, and the long-run distribution of wealth," FMM Working Paper 25-2018, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    5. repec:bpj:sndecm:v:23:y:2019:i:1:p:16:n:2 is not listed on IDEAS
    6. Marwil J. Dávila-Fernández & Serena Sordi, 2018. "Attitudes Toward Climate Policies in a Macrodynamic Model of the Economy," Department of Economics University of Siena 784, Department of Economics, University of Siena.
    7. Dávila-Fernández, Marwil J. & Sordi, Serena, 2019. "Distributive cycles and endogenous technical change in a BoPC growth model," Economic Modelling, Elsevier, vol. 77(C), pages 216-233.
    8. Mariolis Theodore & Konstantakis Konstantinos N. & Michaelides Panayotis G. & Tsionas Efthymios G., 2019. "A non-linear Keynesian Goodwin-type endogenous model of the cycle: Bayesian evidence for the USA," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 23(1), pages 1-16, February.
    9. Up Sira Nukulkit, 2018. "Neutral Technical Progress and the Measure of Value: along the Kaldor-Kennedy line," Working Paper Series, Department of Economics, University of Utah 2018_05, University of Utah, Department of Economics.
    10. Marwil J. Dávila-Fernández, 2018. "Alternative Approaches to Technological Change when Growth is BoPC," Department of Economics University of Siena 795, Department of Economics, University of Siena.
    11. Steven Fazzari & Piero Ferri & AnnaMaria Variato, 2018. "Demand-led growth and accommodating supply," FMM Working Paper 15-2018, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    12. Marwil J. Dávila-Fernández & Serena Sordi, 2018. "Path dependence, distributive cycles and export capacity in a BoPC growth model," Department of Economics University of Siena 785, Department of Economics, University of Siena.

    More about this item

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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