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Economic Growth and the Financial Economics of Capital Accumulation under Shifting Technological Change

Author

Listed:
  • Voxi Heinrich S Amavilah

    (Glendale College)

  • Richard T. Newcomb

    (University of Arizona)

Abstract

This paper develops a simple and practical framework for characterizing (long-run) economic growth and fluid capital accumulation under shifting technological change. The framework specifies a technological change that depends on exogenous and endogenous factors as well as the interaction between the two sets of factors, and therefore allows for the evaluation of the (a) output/capital ratio via capital stock (balance sheet) adjustments and intensities, (b) value added stream of income via changes in cash flows (income statements) at some rates of change constrained to be compatible with ( c) financial economics of the feasible accumulation of capital investment (sources and uses of funds statement). The model is simple - it is only a single-equation reduced form of a transcendental production function - yet one which can be estimated either as (1) a single equation, (2) three single equations, or (3) a system of three seemingly unrelated equations.

Suggested Citation

  • Voxi Heinrich S Amavilah & Richard T. Newcomb, 2004. "Economic Growth and the Financial Economics of Capital Accumulation under Shifting Technological Change," GE, Growth, Math methods 0404001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpge:0404001
    Note: Type of Document - wpd; pages: 26. Made available for comments only. Contains 3 pages of hand-drawn figures. Figures can will be sent by fax or snail mail upon request - free postage in the USA.
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    Cited by:

    1. Voxi Heinrich AMAVILAH, 2016. "Productivity and Technical Change According to Salter – A note," Journal of Economic and Social Thought, KSP Journals, vol. 3(2), pages 302-307, June.
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    3. Voxi Heinrich S Amavilah, 2004. "Economic Performance in a Cross-Section of U.S. Native American Economies," GE, Growth, Math methods 0405003, University Library of Munich, Germany.
    4. Amavilah, Voxi Heinrich, 2013. "The Love Aspects of Human Capital and the Economic Activity of Countries," MPRA Paper 52686, University Library of Munich, Germany.
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    6. Amavilah, Voxi Heinrich, 2014. "Human Knowledge and a Commonsensical Measure of Human Capital: A Proposal," MPRA Paper 57670, University Library of Munich, Germany.
    7. Amavilah, Voxi Heinrich, 2011. "The Full Value of the Nobel Prize - Part 1: Mining “Data Without Theory”," MPRA Paper 33483, University Library of Munich, Germany.
    8. Amavilah, Voxi Heinrich, 2014. "Knowledge = Technology + Human Capital and the Lucas and Romer Production Functions," MPRA Paper 58847, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic growth and fluid capital accumulation; economic growth under shifting technological change; growth models;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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