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primary topic: Steady-State Growth and the Elasticity of Substitution

Steady-State Growth and the Elasticity of Substitution
type: Article
abstract: In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the assessment of Klump and de La Grandville (2000) that the elasticity of substitution is a powerful engine of economic growth. However, unlike their findings my result applies to the steady-state growth rate. Moreover, it does not hinge on particular assumptions on how aggregate savings come about. It holds for any household sector allowing savings to grow at the same rate as aggregate output.
date: 2010
status: published
author list: authors
type: EPrint
type: WorkingPaperEPrint
is part of: repository
has document: Steady-State Growth and the Elasticity of Substitution (PDF)
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subject: 330 Wirtschaft

Steady-State Growth and the Elasticity of Substitution (PDF)
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Andreas Irmen
type: Person
given name: Andreas
family name: Irmen

Steady-State Growth and the Elasticity of Substitution (Other)
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primary topic: Steady-State Growth and the Elasticity of Substitution

330 Wirtschaft
type: Concept
preferred label: 330 Economics @en