Technical Change in Alternative Theories of Growth

Luca Zamparelli

No 2404, Working Papers from New School for Social Research, Department of Economics

Abstract: This paper investigates alternative ways of introducing technological progress in heterodox theories of economic growth. We model technical change as: i) exogenous and costless; ii) a positive externality of capital accumulation, the wage share or the employment rate; iii) endogenous and costly. We implement these formalizations in Classical growth theories, where investments coincide with full capacity savings, and Keynesian theories where capital accumulation is demand constrained. We also distinguish between abundant and inelastic labor market closures. We discuss the outcomes of these models in terms of long-run growth, functional income distribution and employment.

Keywords: Technical change; heterodox growth models; R&D; factor income shares; employment (search for similar items in EconPapers)
JEL-codes: D24 D33 E25 O30 O41 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2024-01
New Economics Papers: this item is included in nep-eur, nep-gro, nep-hme, nep-pke and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:new:wpaper:2404

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