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Induced Innovation Revisited.
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- Author(s): Funk, Peter
- Source:
Economica; Feb2002, Vol. 69 Issue 273, p155, 17p, 2 Diagrams- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: This paper studies the joint evolution of factor prices, factor shares and the type of technical progress. Its main aim is to give a microeconomic foundation to the Hypothesis of Induced Innovation of the earlier literature, which assumes that the type of progress at any moment of time is chosen so as to maximize the current rate of output growth. An important conclusion of the Hypothesis of Induced Innovation is that in the long run factor–augmenting technical progress takes the form of pure labour augmentation. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Economica is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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