The Paradox of Technological Progress, Growth, Distribution, and Employment in a Demand-led Framework

Hiroaki Sasaki

MPRA Paper from University Library of Munich, Germany

Abstract: This study builds a Kaleckian model that incorporates endogenous technological progress and investigates how a change in a parameter that directly fosters technological progress affects growth and distribution. In this model, there is an optimal wage share that maximizes the technological progress rate. Accordingly, if the actual wage share can be moved to an optimal level, the economic growth rate will increase. This analysis reveals that a policy that directly promotes technological progress consequently decreases the long-run equilibrium value of the wage share, the capacity utilization rate, the employment rate, and the economic growth rate.

Keywords: endogenous technological progress; education; R\&D; growth and distribution (search for similar items in EconPapers)
JEL-codes: E11 E12 E24 E25 O33 O41 (search for similar items in EconPapers)
Date: 2024-08-12
New Economics Papers: this item is included in nep-gro, nep-hme and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121694

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