Endogenous task-based technical change-factor scarcity and factor prices

• Authors: Andreas Irmen

Abstracts

EN

This paper develops a static model of endogenous task-based technical progress to study how factor scarcity induces technological progress and changes in factor prices. The equilibrium technology is multi-dimensional and not strongly factorsaving in the sense of Acemoglu (2010). Nevertheless, labour scarcity induces labour productivity growth. There is a  weak but no strong absolute equilibrium bias. This model provides a plausible interpretation of the famous contention of Hicks (1932) about the role of factor prices and factor endowments for induced innovations. It may serve as a microfoundation for canonical macro-economic models. Moreover, it accommodates features like endogenous factor supplies and a binding minimum wage.

Keywords

EN

economic growth; endogenous technical change; direction of technical change; biased technology

• Publisher: Uniwersytet Ekonomiczny w Poznaniu
• Journal: Economics and Business Review
• Year: 2020
• Volume: 6(20)
• Issue: 2
• Pages: 81-118

Contributors

author

Andreas Irmen

• https://orcid.org/0000000304108855

Identifiers

DOI

10.18559/ebr.2020.2.6

Biblioteka Nauki

1011589