Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89746
Authors: 
Irmen, Andreas
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4477
Abstract: 
Uzawa's steady-state growth theorem (Uzawa (1961)) is generalized to a neoclassical economy that uses current output, e. g., to create technical progress or to manufacture intermediates. The difference between aggregate final-good production and these resources is referred to as net output. The new generalized steady-state growth theorem holds since net output exhibits constant returns to scale in capital and labor. This insight provides an understanding for why technical change is labor-augmenting in steady state even if capital-augmenting technical change is feasible. By example, this point is made for three recent growth models that allow for endogenous capital- and labor-augmenting technical change, namely, Irmen (2013), Acemoglu (2003), and Acemoglu (2009), Chapter 15. The reduced form of these models is shown to be consistent with the generalized steady-state growth theorem.
Subjects: 
steady-state growth
capital accumulation
Uzawa's Theorem
endogenous direction of technical change
JEL: 
E10
O10
O40
Document Type: 
Working Paper

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