Harrod-Neutral Technical Progress and Fluke Switch Points
25 Pages Posted: 21 Jul 2019
Date Written: July 19, 2019
This article considers Harrod-neutral technical progress in the context of an analysis of the choice of technique. In a model of the production of commodities by means of commodities, neutral technical change is compatible with the reswitching of techniques, capital reversing, process recurrence, and the reverse substitution of labor. A taxonomy of fluke switch points is applied to an example, illustrating how these phenomena can arise and vanish in the course of neutral technical progress.
Keywords: Cambridge Capital Controversy, Harrod-neutral technical change, structural economic dynamics, choice of technique
JEL Classification: B1, C67, D33, O33
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