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Pré-Publication, Document De Travail Année : 2011

Technical change in a neoclassical two-sector model of optimal growth

Résumé

This paper investigates into the asymmetrical consequences of consumption-specific and investment-specific technical change in a two-sector growth framework. Hicks-neutral technological shocks of the former type increase steady-state consumption one-for-one, and Hicks-neutral technological shocks of the latter type increase steady-state consumption by a factor equal to the ratio of the macroeconomic capital share to labor share. As this ratio does not necessarily tend to zero as investment-specific total factor productivity goes to infinity, we conclude that consumption can grow asymptotically even in the absence of gains of productivity in the consumption sector, through capital accumulation within the consumption sector alone - this accumulation itself being driven by technical progress within the investment sector. We illustrate this result when the production functions are of Cobb-Douglas type in both sectors, and present in this case a steady growth theorem.
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Dates et versions

halshs-00589627 , version 1 (29-04-2011)
halshs-00589627 , version 2 (11-04-2012)

Identifiants

  • HAL Id : halshs-00589627 , version 1

Citer

Mehdi Senouci. Technical change in a neoclassical two-sector model of optimal growth. 2011. ⟨halshs-00589627v1⟩

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