Labor- and capital-augmenting technical change
By: [by] Daron Acemoglu
Contributors: Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 03-02; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 03-02.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2002
Place of publication: Cambridge, MA
Language: eng
Number of pages: 42
Description: I analyze an economy in which firms can undertake both labor- and capital-augmenting technological improvements. In the long run, the economy resembles the standard growth model with purely labor-augmenting technical change, and the share of labor in GDP is constant. Along the transition path, however, there is capital-augmenting technical change and factor shares change. Tax policy and changes in labor supply or savings typically change factor shares in the short run, but have no or little effect on the long-run factor distribution of income. Keywords: Economic Growth, Endogenous Growth, Factor Shares, Technical Change. JEL Classifications: O33, O14, O31, E25.
Notes: "December 2002."

Includes bibliographical references (p. 35-38).

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