A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth. (13th April 2015)

• Record Type: Journal Article
• Authors: Acikgoz, Senay; Mert, Merter
• Is Part Of: SAGE Open. Volume 5:Number 2(2015:Apr./Jun.)
• Publication Date: 2015-04-13
• Subjects: Hicks-neutral -- Harrod-neutral -- technological progress -- growth -- stability; Social sciences -- Periodicals; 300.5
• DOI: 10.1177/2158244015579942
• Languages: English
• ISSNs: 2158-2440

Abstract

This study emphasizes the necessity of the Harrod-neutral identification of technological progress for the models of economic growth, which use Cobb–Douglas production function and which are based on stability. Some of the important studies, which reviewed a balanced growth path or a steady state of the Solow model, assumed the nature of technological progress as Hicks-neutral rather than Harrod-neutral. In this work, we have reminded that Harrod-neutral is a better assumption for the nature of technological progress in such studies.