Abstract

Directed technological change (DTC) concerns how stocks of factor-augmenting knowledge evolve relative to each other. We model investment in factor-augmenting knowledge at firm level, and show that relative investment rates depend on the relative factor shares and elasticities. Furthermore, we argue that links between the knowledge stocks and substitution between final goods are crucial to the long-run evolution of the economy. (C) 2013 Elsevier B.V. All rights reserved.

Keywords

Growth; Directed technological change; Knowledge spillovers

Published in

Economics Letters
2013, Volume: 119, number: 1, pages: 77-80
Publisher: ELSEVIER SCIENCE SA

SLU Authors

• Hart, Robert

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics


Publication Identifiers

DOI: https://doi.org/10.1016/j.econlet.2013.01.028

Permanent link to this page (URI)

https://res.slu.se/id/publ/41808