Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function

Schlicht, Ekkehart

Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: This note proposes a growth model that is derived from the standard Solow growth model by replacing the neoclassical production function with Kaldor’s technical progress function while maintaining a marginalist theory of factor prices in the spirit suggested by von Weizsäcker (1966, 1966b). The hybrid model so obtained accounts for balanced growth in a way that appears less arbitrary than the Solow model, especially because it directly accounts for Harrod neutral technical change, without any need for further assumptions.

Keywords: directed technical change; directed technological change; bias in innovation; technical progress function; neoclassical production function; Harrod neutrality; Hicks neutrality; Cambridge theory of distribution; marginal productivity theory; Kaldor; Kennedy; von Weizsäcker; Solow model (search for similar items in EconPapers)
JEL-codes: B31 B59 E12 E13 E25 O30 O40 (search for similar items in EconPapers)
Date: 2015-06-19
New Economics Papers: this item is included in nep-eff, nep-gro, nep-hpe, nep-ino, nep-mac and nep-pke
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Citations: View citations in EconPapers (2)

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