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Technological Change and Demographics in a model where consumption is time-constrained

Author

Listed:
  • Manoj Pant

    (Indian Institute of Foreign Trade,New Delhi,India)

  • Sugandha Huria

    (Indian Institute of Foreign Trade,New Delhi,India)

Abstract

This study demonstrates why traditional ‘cost-saving’ technical progress fails in an economy where consumption is time-constrained. In such a case, introducing ‘time- saving’ technical progress establishes a new consumption-production equilibrium characterized by higher per-capita consumption and real income, lower prices, and, a higher scale of production for surviving producers. Nonetheless, since there is a limit to how much time can be saved by technological advances, the model also suggests an alternative solution in the form of a rising labor force (via immigration) to close the production-consumption gap. This solution echoes the empirical reality illustrating why Emerging Market Economies matter.

Suggested Citation

  • Manoj Pant & Sugandha Huria, 2022. "Technological Change and Demographics in a model where consumption is time-constrained," Working Papers 2259, Indian Institute of Foreign Trade.
    • Handle: RePEc:ift:wpaper:2259
    as

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    File URL: ftp://203.190.248.10/RePEc/ift/workingpapers/EC-22-59.pdf
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    References listed on IDEAS

    as
    1. Dey, Oindrila & Chakravarty, Debalina, 2020. "Electric Street Car as a Clean Public Transport Alternative: A Choice Experiment Approach," MPRA Paper 101000, University Library of Munich, Germany, revised Apr 2020.
    2. Kashika Arora & Areej A. Siddiqui & Biswajit Nag, 2020. "Devevloping Linkages Between Export Guarantees And Technical Efficiency Of Indian Firms," Working Papers 2045, Indian Institute of Foreign Trade.
    3. Manoj pant & Sugandha Huria, 2019. "Quantification of Services Trade Restrictions - A new Approach," Working Papers 1940, Indian Institute of Foreign Trade.
    4. Sunitha Raju & V.Raveendra Saradhi, 2019. "Imports from China:Threat or Opportunity Analysis of Indian Manufacturing Sector," Working Papers 1938, Indian Institute of Foreign Trade.
    5. Sheeba Kapil & Rakesh K Mishra, 2019. "Corporate Governance structure and firm performance in Indian context: A Structural Equation Modelling Approach," Working Papers 1937, Indian Institute of Foreign Trade.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cost-saving technical progress; Time-saving technical progress; Consumption-time; General Equilibrium model; Demographics; Immigration;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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