Endogenous task-based technical change—factor scarcity and factor prices
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 factor-saving in the sense of Acemoglu (2010). Nevertheless, labou...
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| Format: | Article |
| Language: | English |
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Sciendo
2020-06-01
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| Series: | Economics and Business Review |
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| Online Access: | https://doi.org/10.18559/ebr.2020.2.6 |
| _version_ | 1818730241230635008 |
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| author | Irmen Andreas |
| author_facet | Irmen Andreas |
| author_sort | Irmen Andreas |
| collection | DOAJ |
| description | 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 factor-saving 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. |
| first_indexed | 2024-12-17T22:58:39Z |
| format | Article |
| id | doaj.art-5d99bcbd2cff42ecb9236701e50569a2 |
| institution | Directory Open Access Journal |
| issn | 2450-0097 |
| language | English |
| last_indexed | 2024-12-17T22:58:39Z |
| publishDate | 2020-06-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business Review |
| spelling | doaj.art-5d99bcbd2cff42ecb9236701e50569a22022-12-21T21:29:27ZengSciendoEconomics and Business Review2450-00972020-06-01628111810.18559/ebr.2020.2.6ebr.2020.2.6Endogenous task-based technical change—factor scarcity and factor pricesIrmen Andreas0Department of Economics and Management, University of Luxembourg, Campus Kirchberg (Bloc G), 6, Rue Richard Coudenhove-Kalergi, L-1359Luxembourg, LuxembourgThis 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 factor-saving 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.https://doi.org/10.18559/ebr.2020.2.6economic growthendogenous technical changedirection of technical changebiased technologyo31d92o33o41 |
| spellingShingle | Irmen Andreas Endogenous task-based technical change—factor scarcity and factor prices Economics and Business Review economic growth endogenous technical change direction of technical change biased technology o31 d92 o33 o41 |
| title | Endogenous task-based technical change—factor scarcity and factor prices |
| title_full | Endogenous task-based technical change—factor scarcity and factor prices |
| title_fullStr | Endogenous task-based technical change—factor scarcity and factor prices |
| title_full_unstemmed | Endogenous task-based technical change—factor scarcity and factor prices |
| title_short | Endogenous task-based technical change—factor scarcity and factor prices |
| title_sort | endogenous task based technical change factor scarcity and factor prices |
| topic | economic growth endogenous technical change direction of technical change biased technology o31 d92 o33 o41 |
| url | https://doi.org/10.18559/ebr.2020.2.6 |
| work_keys_str_mv | AT irmenandreas endogenoustaskbasedtechnicalchangefactorscarcityandfactorprices |