Fluke Switch Points and a Real Wicksell Effect of Zero
15 Pages Posted: 8 Sep 2017
Date Written: September 5, 2017
This note presents two numerical examples, in a model with two techniques of production, of a switch point with a real Wicksell effect of zero. The variation in the technique adopted, at the switch point, leaves employment and the value of capital per unit net output unchanged. This invariant generalizes to switch points with a real Wicksell effect of zero for steady states with a positive rate of growth.
Keywords: Switch points, Choice of Technique, Flukes, Wicksell effects
JEL Classification: B24, D24
Suggested Citation: Suggested Citation