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Directed technological change and factor shares

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  • Hart, Rob

Abstract

Directed technological change (DTC) concerns how stocks of factor-augmenting knowledge evolve relative to each other. We model investment in factor-augmenting knowledge at firm level, and show that relative investment rates depend on the relative factor shares and elasticities. Furthermore, we argue that links between the knowledge stocks and substitution between final goods are crucial to the long-run evolution of the economy.

Suggested Citation

  • Hart, Rob, 2013. "Directed technological change and factor shares," Economics Letters, Elsevier, vol. 119(1), pages 77-80.
    • Handle: RePEc:eee:ecolet:v:119:y:2013:i:1:p:77-80
    DOI: 10.1016/j.econlet.2013.01.028
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    References listed on IDEAS

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    Cited by:

    1. Gregory Casey, 2024. "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(1), pages 192-228.
    2. Hart, Rob, 2018. "Rebound, directed technological change, and aggregate demand for energy," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 218-234.
    3. Gustav Engström & Johan Gars & Niko Jaakkola & Therese Lindahl & Daniel Spiro & Arthur A. van Benthem, 2020. "What Policies Address Both the Coronavirus Crisis and the Climate Crisis?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 789-810, August.
    4. Hart, Rob, 2020. "Growth, pollution, policy!," European Economic Review, Elsevier, vol. 126(C).
    5. Emanuele Campiglio & Alessandro Spiganti & Anthony Wiskich, 2023. "Clean innovation and heterogeneous financing costs," Working Papers 2023: 07, Department of Economics, University of Venice "Ca' Foscari".

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