Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127312
Authors: 
Irmen, Andreas
Year of Publication: 
2010
Series/Report no.: 
Discussion Paper Series, University of Heidelberg, Department of Economics 496
Abstract: 
In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the assessment of Klump and de La Grandville (2000) that the elasticity of substitution is a powerful engine of economic growth. However, unlike their findings my result applies to the steady-state growth rate. Moreover, it does not hinge on particular assumptions on how aggregate savings come about. It holds for any household sector allowing savings to grow at the same rate as aggregate output.
Subjects: 
Capital Accumulation
Elasticity of Substitution
Direction of Technical Change
Neoclassical Growth Model
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
393.98 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.