A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth


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Acikgoz S., Mert M.

SAGE OPEN, vol.5, no.2, 2015 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 5 Issue: 2
  • Publication Date: 2015
  • Doi Number: 10.1177/2158244015579942
  • Journal Name: SAGE OPEN
  • Journal Indexes: Emerging Sources Citation Index, Scopus
  • Keywords: Hicks-neutral, Harrod-neutral, technological progress, growth, stability, INNOVATION

Abstract

This study emphasizes the necessity of the Harrod-neutral identification of technological progress for the models of economic growth, which use Cobb-Douglas production function and which are based on stability. Some of the important studies, which reviewed a balanced growth path or a steady state of the Solow model, assumed the nature of technological progress as Hicks-neutral rather than Harrod-neutral. In this work, we have reminded that Harrod-neutral is a better assumption for the nature of technological progress in such studies.