【2018年6月12日】【经济与金融系学术讨论会第25期】A Multi-factor Uzawa Growth Theorem and Endogenous Capital-Augmenting Technological Change (with Gregory Casey)
发布时间:06-08-18

时间:2018年6月12日(周二)12:00-13:00
地点:同济大厦A楼505室
主讲人: Prof. Ryo Horii, Institute of Social and Economic Research, Osaka University
题目:A Multi-factor Uzawa Growth Theorem and Endogenous Capital-Augmenting Technological Change (with Gregory Casey)
语言:英文

摘要
On a balanced growth path in the standard neoclassical growth model, all technical change must be labor-augmenting, unless the production function is Cobb-Douglas. This result, known as the Uzawa steady state theorem, is at odds with two well-established facts in macroeconomics: (a) the relative price of investment has been falling over time, which implies the rate of capital-augmenting technological change is positive, and (b) the elasticity of substitution between capital and labor is significantly less than one, ruling out the Cobb-Douglas case. We show that this puzzle emerges because previous studies focus only on labor and capital, ignoring other non-accumulable factors, such as land. We develop an endogenous growth model with three factors of production. In the model, firms choose whether to direct technological change towards labor, capital, or land. We show that, even with a less than the unitary elasticity of substitution between labor and capital, the endogenously determined rate of capital-augmenting technological change is strictly positive on the balanced growth path, consistent with the observed facts.