Pattern Analysis Applied to Structural Economic Dynamics with a Choice of Technique: A Numerical Example

26 Pages Posted:

Date Written: November 24, 2018

Abstract

This article illustrates the application of pattern analysis to structural economic dynamics with a choice of technique. A numerical example is presented in which technical progress is introduced. Examples of temporal paths through the parameter space illustrate variations of the wage frontier. A single technique is initially uniquely cost-minimizing for all feasible rates of profits. Eventually, the technique for which coefficients of production decrease at the fastest rate is always cost-minimizing. This example illustrates possible variations in the existence of Sraffa effects, which arise during the transition between these positions.

Keywords: Choice of technique, structural dynamics, switch points, technological change

JEL Classification: B1, C67, D46, O33

Suggested Citation

Vienneau, Robert L., Pattern Analysis Applied to Structural Economic Dynamics with a Choice of Technique: A Numerical Example (November 24, 2018). Available at SSRN: https://ssrn.com/abstract=

Robert L. Vienneau (Contact Author)

Independent ( email )

209 Maple Street
Rome, NY 13440
315-336-5417 (Phone)
315-334-4964 (Fax)

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