Capital Substitution in an Industrial Revolution

Mark Staley () and Peter Berg

MPRA Paper from University Library of Munich, Germany

Abstract: A unified growth model is presented in which productivity growth is driven by learning-by-doing. We show that the growth rate of productivity is an increasing function of the share of capital. It is assumed that the industrial sector has a higher capital share than the agricultural sector and that the ability to substitute one output for the other slowly rises over time. Two distinct regimes of constant growth emerge, connected by a rapid transition in which the growth rates of population and income increase by an order of magnitude, indicative of simultaneous agricultural and industrial revolutions.

Keywords: Growth; Industrial Revolution; Capital; Substitution (search for similar items in EconPapers)
JEL-codes: N10 O41 (search for similar items in EconPapers)
Date: 2012-06-30
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https://mpra.ub.uni-muenchen.de/40530/1/MPRA_paper_40530.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/43605/1/MPRA_paper_43605.pdf revised version (application/pdf)

Related works:
Journal Article: Capital substitution in an industrial revolution (2015)
Journal Article: Capital substitution in an industrial revolution (2015)
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