A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth
This study emphasizes the necessity of the Harrod-neutral identification of technological progress for the models of economic growth, which use Cobb–Douglas production function and which are based on stability. Some of the important studies, which reviewed a balanced growth path or a steady state of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2015-04-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/2158244015579942 |
| Summary: | This study emphasizes the necessity of the Harrod-neutral identification of technological progress for the models of economic growth, which use Cobb–Douglas production function and which are based on stability. Some of the important studies, which reviewed a balanced growth path or a steady state of the Solow model, assumed the nature of technological progress as Hicks-neutral rather than Harrod-neutral. In this work, we have reminded that Harrod-neutral is a better assumption for the nature of technological progress in such studies. |
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| ISSN: | 2158-2440 |