 An intertemporal microeconomic theory of disembodied and price-induced technical progressMichael Caputo and Quirino Paris Economic Modelling, 2013, vol. 33, issue C, 631-640 Abstract: A theory of a wealth maximizing, capital accumulating, price taking firm facing adjustment costs and operating in the presence of disembodied and price-induced technical progress is developed. The testable implications of the extended theory are derived under mild assumptions and are thus intrinsic to the theory, not to mention observable, thereby permitting empirical scrutiny of them. The comparative dynamics properties are given in the preferred form of a symmetric and semidefinite matrix. The testable implications are contrasted with their archetypal counterparts from the adjustment cost theory. The comparison shows how (i) the introduction of disembodied and price-induced technical progress into the adjustment cost theory destroys all of its testable properties, and (ii) the disembodied and price-induced technical progress theory nests the adjustment cost theory as a special case. Keywords: Price induced technical progress; Disembodied technical progress; Comparative dynamics; Optimal control; Testable implications (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:33:y:2013:i:c:p:631-640 DOI: 10.1016/j.econmod.2013.05.002 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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