A new class of production functions and an argument against purely labor‐augmenting technical change
Jakub Growiec
International Journal of Economic Theory, 2008, vol. 4, issue 4, 483-502
Abstract:
This paper derives the macro‐level production function from idea‐based microfoundations. Labor‐augmenting and capital‐augmenting developments are assumed to be Pareto‐distributed and mutually dependent. Using the Clayton copula family to capture this dependence, a new “Clayton–Pareto” class of production functions is derived that nests both the Cobb–Douglas and the constant elasticity of substitution. In the most general case, technical change is not purely labor‐augmenting over the long run, but it augments both capital and labor. Under certain parametrizations, the derived elasticity of substitution between capital and labor exceeds unity and, therefore, gives rise to long‐run endogenous growth.
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)
Downloads: (external link)
https://doi.org/10.1111/j.1742-7363.2008.00090.x
Related works:
Working Paper: A new class of production functions and an argument against purely labor-augmenting technical change (2006) 
Working Paper: A New Class of Production Functions and an Argument Against Purely Labor-Augmenting Technical Change (2006) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:4:y:2008:i:4:p:483-502
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355
Access Statistics for this article
International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano
More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().