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Joint technological changes in multiple industries

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  • Quaas, Georg

Abstract

Most neo-Ricardian studies on the "choice of technique" are based on a comparison of alternative technologies applicable to the same industrial branch. Some authors even recommend restrict analyses of the long-run technological changes to a single industry. In reality, innovations often require technological changes in several industries. In this article, it is shown that a step-by-step analysis of complex technological innovations is path-dependent and does not always lead to a result. Furthermore: The number of mathematically possible switch-points is reduced by the number of affected industries and by ambiguous price relations in the vicinity of intersection-points of wage curves. This could, without simplification of Sraffa's theory, explain why situations in which two alternative technologies generate the same prices, i.e. switch-points, are empirically extremely rare events.

Suggested Citation

  • Quaas, Georg, 2025. "Joint technological changes in multiple industries," Working Papers 182, University of Leipzig, Faculty of Economics and Management Science.
    • Handle: RePEc:zbw:leiwps:312399
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    References listed on IDEAS

    as
    1. David Levhari, 1965. "A Nonsubstitution Theorem and Switching of Techniques," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 79(1), pages 98-105.
    2. Kurz Heinz D. & Gehrke Christian, 1994. "On the Choice of Technique: A Comment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 213(1), pages 100-106, February.
    3. Michael Bruno & Edwin Burmeister & Eytan Sheshinski, 1966. "The Nature and Implications of the Reswitching of Techniques," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(4), pages 526-553.
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    More about this item

    Keywords

    capital theory; switch-points; choice of technologies; path-dependency; embedded equations;
    All these keywords.

    JEL classification:

    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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