IDEAS home Printed from https://ideas.repec.org/a/cup/nierev/v164y1998ip80-89_11.html
   My bibliography  Save this article

Technical Progress and the Natural Rate in Models of the UK Economy

Author

Listed:
  • Church, Keith B.
  • Mitchell, Peter R.
  • Sault, Joanne E.
  • Wallis, Kenneth F.

Abstract

This article analyses the role of technical progress in three models of the UK economy. In the standard neoclassical growth model, the growth of the economy is dictated by the growth rate of technical progress plus that of the population. Our two simulation experiments, increasing the level of technical progress by 1 per cent and the growth rate by 0.1 percentage points, suggest that technological progress plays the same role in these large macroeconometric models. In both cases the result is higher output and real wages. However adjustment following the shocks is protracted, giving substantial technological unemployment which in several instances is permanent.

Suggested Citation

  • Church, Keith B. & Mitchell, Peter R. & Sault, Joanne E. & Wallis, Kenneth F., 1998. "Technical Progress and the Natural Rate in Models of the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 164, pages 80-89, April.
    • Handle: RePEc:cup:nierev:v:164:y:1998:i::p:80-89_11
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0027950100007419/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:nierev:v:164:y:1998:i::p:80-89_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.