A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth
SAGE Open, Vol. 5(2), pp. 1-5, April 2015
Posted: 13 Jun 2016
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.
Keywords: Hicks-Neutral, Harrod-Neutral, Technological Progress, Growth, Stability
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