 The Surrogate Wage Function and Capital: Theory with MeasurementCengiz Ozol Canadian Journal of Economics, 1991, vol. 24, issue 1, 175-91 Abstract: Technological change induces a structural change in both the values tableau and the prices tableau of an economy. The measurable change in the values tableau reveals the labor-saving effect and the measurable change in the prices tableau reveals the cost-reducing effect. A measure-preserving transformation between the values tableau and the prices tableau provides the basis for an unambiguous definition of the aggregate capital-labor ratio notion as a function of the rate of profit. The paper shows that the direction of shifts in the capital-functions of an economy depend on the relative strength of the labor-saving effect versus the cost-reducing effect of technological change. If the cost-reducing effect of technological change is greater (less) than the labor-saving effect, then the capital-labor ratio decreases (increases) and the system generates a rising (falling) tendency for the rate of profit. Date: 1991 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:24:y:1991:i:1:p:175-91 Ordering information: This journal article can be ordered from Access Statistics for this article Canadian Journal of Economics is currently edited by Zhiqi Chen More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC. |
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