[Can the Steady-State Path of Neoclassical Growth Model Embrace Capital-Augmenting Technological Progress?]
The celebrated Uzawa(1961) theorem holds that，on the steady-growth path of neoclassical growth model，technological progress must be purely labor-augmenting rather than capital-augmenting，except the special case where the production function takes the form of Cobb-Douglas. With an augmented Ramsey model，however，we prove in this paper that，when investment has adjustment cost which correlates positively with capital-augmenting technology，the steady state growth path can also embrace capital-augmenting technological progress，even if the production function is not Cobb-Douglas. Our conclusions contribute to the study of steady-state condition of neoclassical growth model，and the understanding of the roles of capital and capital-augmenting technology progress in economic growth.
|Date of creation:||Oct 2012|
|Date of revision:|
|Publication status:||Published in South China Journal of Economics 10 (2012): pp. 43-50|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
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