Two-sector growth with endogenous technical change

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Title:: Two-sector growth with endogenous technical change: A Marxian simulation model

Description:: Conventional growth literature fails to incorporate technical change and investment as endogenous variables; Marxian growth literature is bedeviled indeterminacies surrounding technical change and rate of profit. Both sets of problems are addressed using a two-sector (capital good, consumer good) model, in which capitalists accumulate coexisting vintages of techniques. The parameters of the latest technique are determined by maximizing the innovator's profit, constrained by diminishing returns to mechanization. The model describes the differential impact of goods-, capital-, and labor-market equilibrium on the sectors, as the economy converges to a proportional growth path. Conditions are identified under which prices approach labor values over time; and under which Marx's "rising composition" and "falling profit rate" tendencies are realized. (Auszug Titelseite)

Note:: Enthält persönliche Widmung "With my Compliments" und Unterschrift des Verfassers.

Related work:: Laibman, David: Two-sector growth with endogenous technical change. A Marxian simulation model. In: The Quarterly Journal of Economics, Vol. 96, No. 1, February 1981, S. 47-75