I analyze an economy in which profit-maximizing firms can undertake both labor- or capital-augmenting technological improvements. In the long run, the economy looks like the standard growth model with purely labor-augmenting technical change, and the share of labor in GDP is constant. Along the tran...

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Bibliographic Details

Main Author:	Acemoglu, Daron 1967- (Author)
Format:	Book
Language:	English
Published:	Cambridge, Mass. 2000
Series:	National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 7544
Subjects:	Politik Capital investments Capital levy Capital productivity > Effect of technological innovations on Factor proportions > Effect of technological innovations on Labor policy Labor productivity > Effect of technological innovations on Labor supply > Effect of technological innovations on Technological innovations > Economic aspects Wages > Government policy
Online Access:	Volltext
Summary:	I analyze an economy in which profit-maximizing firms can undertake both labor- or capital-augmenting technological improvements. In the long run, the economy looks like the standard growth model with purely labor-augmenting technical change, and the share of labor in GDP is constant. Along the transition path, however, there is capital-augmenting technical change and factor shares change. A range of policies may have counterintuitive implications due to their effect on the direction of technical change. For example, taxes on capital income reduce the labor share in the short run, but increase it in the medium/long run.
Physical Description:	23 S. graph. Darst.