FACTOR AUGMENTATION, FACTOR ELIMINATION, AND ECONOMIC GROWTH.

Economic growth theory distinguishes between reproducible and nonreproducible factors of production. In traditional growth models based on factor‐augmenting technical change, perpetual economic growth requires that each essential nonreproducible factor, such as labor, be augmented by a reproducible...

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Publicado en:Economic Inquiry Vol. 57; no. 1; pp. 429 - 453
Autores principales: Seater, John, Yenokyan, Karine
Formato: Artículo
Publicado: Wiley-Blackwell Jan2019
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Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/ecin.12711
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        atl: FACTOR AUGMENTATION, FACTOR ELIMINATION, AND ECONOMIC GROWTH.
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        au:
          Seater, John
          Yenokyan, Karine
        affil:
          Economics Department, Boston College, Chestnut Hill MA 02467‐3806
          Department of Epidemiology, Bloomberg School of Public Health, Johns Hopkins University, Baltimore MD 21205
      su:
        Economic development
        Wage differentials
        Marginal productivity
        Research & development
        Economic opportunities
      sug:
        subj:
          Economic development
          Wage differentials
          Marginal productivity
          Research and Development in Biotechnology
          Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
          Research & development
          Economic opportunities
      ab: Economic growth theory distinguishes between reproducible and nonreproducible factors of production. In traditional growth models based on factor‐augmenting technical change, perpetual economic growth requires that each essential nonreproducible factor, such as labor, be augmented by a reproducible factor, such as human capital. Recent models of factor‐eliminating technical change deliver perpetual growth by eliminating the nonreproducible factors. Heretofore, the literature has kept factor augmentation and factor elimination separate. We analyze a model with both. The model generalizes the traditional factor augmentation approach by relaxing the usual restriction that factor elimination is absent. We obtain the striking result that factor‐augmenting technical change is a misspecification when factor‐eliminating technical change is present. The result raises several questions about technical change and endogenous growth.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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