Biased technological change, human capital and factor shares

Hernando Zuleta

No 4380, Documentos de Trabajo from Universidad del Rosario

Abstract: We propose a one-good model where technological change is factor saving andcostly. We consider a production function with two reproducible factors: physical capital and human capital, and one not reproducible factor. The main predictions of the model are the following: (a) The elasticity of output with respect to the reproducible factors depends on the factor abundance of the economies. (b) The income share of reproducible factors increases with the stage of development. (c) Depending on the initial conditions, in some economies the production function converges to AK, while in other economies long-run growth is zero. (d) The share of human factors (raw labor and human capital) converges to a positive number lower than one. Along the transition it may decrease, increase or remain constant.

Keywords: endogenous growth; human capital; factor using and factor savinginnovations; factor income shares (search for similar items in EconPapers)
Pages: 29
Date: 2007-04-25
New Economics Papers: this item is included in nep-dev, nep-dge and nep-hrm
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:col:000092:004380

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