Directed technological change: It's all about knowledge
Directed technological change concerns how stocks of factor-augmenting knowledge evolve relative to each other. In a simple framework we show that relative investment rates depend directly on the relative factor shares, and that the resulting evolution of the economy depends on the substitutability between the factors and the nature of the links between the knowledge stocks. We thus generalize and reinterpret existing results. Furthermore, we propose a novel model of spillovers between stocks of factor-augmenting knowledge which results in multiple equilibria when the factors are substitutes. This may have profound implications for the modelling of technological transitions\m such as from `dirty' to `clean' technology, or from low-skill/low-tech to high-skill/high-tech production systems\m and hence for modelling long-run economic change in general.
|Date of creation:||04 May 2012|
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- Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
- Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2009.
"The Environment and Directed Technical Change,"
NBER Working Papers
15451, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2010. "The Environment and Directed Technical Change," Working Papers 2010.93, Fondazione Eni Enrico Mattei.
- Acemoglu, Daron & Aghion, Philippe & Bursztyn, Leonardo & Hemous, David, 2010. "The Environment and Directed Technical Change," Seminar Papers 762, Stockholm University, Institute for International Economic Studies.
- Acemoglu, Daron & Aghion, Philippe & Bursztyn, Leonardo & Hemous, David, 2011. "The Environment and Directed Technical Change," CEPR Discussion Papers 8660, C.E.P.R. Discussion Papers.
- Asheim, G.B. & Buchholz, W. & Withagen, C.A.A.M., 2002.
"The Hartwick Rule : Myths and Facts,"
2002-52, Tilburg University, Center for Economic Research.
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