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Resource-augmenting R&D with heterogeneous labor supply

Author

Listed:
  • AMIGUES, JEAN-PIERRE
  • MOREAUX, MICHEL
  • RICCI, FRANCESCO

Abstract

The effective labor possibilities frontier (ELPF) is defined as the set of statically efficient allocations of labor inputs in the competing tasks of production and R&D. It is concave if labor is heterogeneous. In an R&D-based growth model with an essential non-renewable natural resource, the shape of the ELPF affects the optimal speed of the transition. If resource endowment is poor, transition is slower and involves a smaller R&D effort, and slower growth in per capita consumption, in the case of a heterogeneous labor force as compared to a homogeneous one. Policies that modify the distribution of skills in the population imply shifts of the ELPF. We provide a taxonomy of possible shifts of the ELPF, and link them to education policy or demographic trends.

Suggested Citation

  • Amigues, Jean-Pierre & Moreaux, Michel & Ricci, Francesco, 2008. "Resource-augmenting R&D with heterogeneous labor supply," Environment and Development Economics, Cambridge University Press, vol. 13(6), pages 719-745, December.
    • Handle: RePEc:cup:endeec:v:13:y:2008:i:06:p:719-745_00
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    Cited by:

    1. Sjak Smulders & Lucas Bretschger & Hannes Egli, 2011. "Economic Growth and the Diffusion of Clean Technologies: Explaining Environmental Kuznets Curves," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(1), pages 79-99, May.
    2. Amigues, Jean-Pierre & Moreaux, Michel, 2008. "Dedicated Technical Progress with a Non-renewable Resource: Efficiency and Optimality," IDEI Working Papers 497, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Growiec, Jakub & Schumacher, Ingmar, 2008. "On technical change in the elasticities of resource inputs," Resources Policy, Elsevier, vol. 33(4), pages 210-221, December.

    More about this item

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J00 - Labor and Demographic Economics - - General - - - General

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