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Revisiting the effects of labour, capital and scale-augmenting technological progress on steady-state output
Sheng, Li1; Yin, Yechang2; Zhang, Anning2; Wu, Jiwei2
2024-04-17
Source PublicationArgumenta Oeconomica
ISSN2720-5088
Volume52Issue:1Pages:179-187
Abstract

The effects of technical change may not exclusively be labour-augmenting, if it is assumed that linear homogeneity or balanced growth is not applicable. This study identified these effects on the steady-state output growth from labour, capital and scale-augmenting technological progress. The findings imply that a drop in investment-goods prices accelerates output growth but to a lesser extent than capital growth, and increasing (decreasing) returns to scale (IRS/DRS) will lead to faster (slower) per-capita output growth, but the effect is free from constant returns to scale (CRS). It was also found that a higher output elasticity of capital can be beneficial to output growth and that a substantial labour supply is conducive to higher income per capita under IRS but will reduce it if DRS are present, but again, CRS does not occur. Differentiating between labour and capital augmentations in empirical research is challenging, as a direct estimation of the impacts of technical change on output growth is impossible. Thus, an indirect estimation was conducted to measure these impacts as a Solow residual.

KeywordFactor Augmentation Labour Augmentation Scale Effect Solow Model Steady-state Growth Uzawa’s Theorem
DOI10.15611/aoe.2024.1.10
URLView the original
Language英語English
PublisherPublishing House of Wroclaw University of Economics and Business
Scopus ID2-s2.0-85194151774
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Citation statistics
Document TypeJournal article
CollectionFaculty of Social Sciences
Affiliation1.Faculty of Political Science and Public Administration, Shandong University, China
2.Faculty of Social Sciences, University of Macau, Macao
Recommended Citation
GB/T 7714
Sheng, Li,Yin, Yechang,Zhang, Anning,et al. Revisiting the effects of labour, capital and scale-augmenting technological progress on steady-state output[J]. Argumenta Oeconomica, 2024, 52(1), 179-187.
APA Sheng, Li., Yin, Yechang., Zhang, Anning., & Wu, Jiwei (2024). Revisiting the effects of labour, capital and scale-augmenting technological progress on steady-state output. Argumenta Oeconomica, 52(1), 179-187.
MLA Sheng, Li,et al."Revisiting the effects of labour, capital and scale-augmenting technological progress on steady-state output".Argumenta Oeconomica 52.1(2024):179-187.
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