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Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function

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  • Schlicht, Ekkehart

Abstract

This note proposes a growth model that is derived from the standard Solow growth model by replacing the neoclassical production function with Kaldor’s technical progress function while maintaining a marginalist theory of factor prices in the spirit suggested by von Weizsäcker (1966, 1966b). The hybrid model so obtained accounts for balanced growth in a way that appears less arbitrary than the Solow model, especially because it directly accounts for Harrod neutral technical change, without any need for further assumptions.

Suggested Citation

  • Schlicht, Ekkehart, 2015. "Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function," Discussion Papers in Economics 24853, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:24853
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Aggregiertes Angebot und aggregierte Nachfrage
      by Ekkehart Schlicht in Funktionale Staatsfinanzen on 2016-11-27 15:05:00

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    Cited by:

    1. Roberto Veneziani & Luca Zamparelli & Daniele Tavani & Luca Zamparelli, 2017. "Endogenous Technical Change In Alternative Theories Of Growth And Distribution," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1272-1303, December.
    2. Alessandro Bellocchi & Giuseppe Travaglini & Beatrice Vitali, 2023. "How capital intensity affects technical progress: An empirical analysis for 17 advanced economies," Metroeconomica, Wiley Blackwell, vol. 74(3), pages 606-631, July.
    3. Mahmoud AL-Refai & Samer Abdelhadi & Adli Al-Qaraein, 2016. "The Impact of Technological Development on Jordanian Industrial Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(4), pages 291-291, March.
    4. Rongbang Xu & Fujie Yang & Sanmang Wu & Qinwen Xue, 2024. "Spatio-Temporal Evolution and Drivers of Carbon Emission Efficiency in China’s Iron and Steel Industry," Sustainability, MDPI, vol. 16(12), pages 1-22, June.

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    More about this item

    Keywords

    directed technical change; directed technological change; bias in innovation; technical progress function; neoclassical production function; Harrod neutrality; Hicks neutrality; Cambridge theory of distribution; marginal productivity theory; Kaldor; Kennedy; von Weizsäcker; Solow model;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals

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