A Generalized Uzawa Growth Theorem and Capital-Augmenting Technological Change
Gregory Casey () and
No 2022-02, Department of Economics Working Papers from Department of Economics, Williams College
We prove a generalized, multi-factor version of the Uzawa steady-state growth theorem. The theorem implies that neoclassical growth models need at least three factors of production to be consistent with empirical evidence on both the capital-labor elasticity of substitution and the existence of capital-augmenting technical change. We also build and calibrate a three-factor endogenous growth model with directed technical change and show that it converges to a balanced growth path that is consistent with the empirical evidence. Our results indicate that natural resources and directed technical change play a central role in explaining balanced growth.
Keywords: Balanced Growth; Uzawa Steady State Growth Theorem; Endogenous Growth; Directed Technical Change (search for similar items in EconPapers)
JEL-codes: E13 E22 O33 O41 (search for similar items in EconPapers)
Date: 2019-11-04, Revised 2022-01
Note: An earlier version of this paper has been circulated under the title A Multi-factor Uzawa Growth Theorem and Endogenous Capital-Augmenting Technological Change.
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Working Paper: A Generalized Uzawa Growth Theorem and Capital-Augmenting Technological Change (2022)
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