Kemp‐Benedict, E. (2019) Cost share‐induced technological change and Kaldor’s stylized facts. Metroeconomica: International Review of Economics, 70 (1). pp. 2-23. ISSN 0026-1386
Abstract
This paper presents a theory of induced technological change in which firms pursue a random, local, and bounded search for productivity-enhancing innovations. Firms implement profitable innovations at fixed prices, which then spread through the economy. After diffusion, all firms adjust prices and wages. The model is consistent with a variety of price-setting behaviors, which determine equilibrium positions characterized by constant cost shares and productivity growth rates. A fixed mark-up can yield Marx-biased technological change. Target-return pricing yields Harrod-neutral technological change with a fixed wage share as a stable equilibrium, consistent with Kaldor's stylized facts, while allowing for deviations from equilibrium, as observed in the longer historical record.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 Wiley. This is an author produced version of an article accepted for publication in Metroeconomica: International Review of Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | classical; evolutionary; Harrod-neutral technological change; induced technological change; post-Keynesian |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Dec 2024 12:36 |
Last Modified: | 05 Dec 2024 12:36 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/meca.12223 |
Sustainable Development Goals: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:220491 |