The Determination of the Rate of Technical Progress
It is clear from almost all approaches to what determines an economy’s equilibrium rate of growth that the rate of technical progress will have a dominant influence upon it. The rate of technical progress will also be a major factor in the determination of an economy’s capital-output ratio, its rate of profit and its distribution of incomes. How the rate of technical progress is determined will therefore be a matter of the utmost importance.
KeywordsLabour Force Labour Productivity Annual Rate Capital Stock Serial Number
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- 1.Cf. J. Conlisk, ‘A neoclassical growth model with endogenously positioned technical change frontier’, Economic Journal, vol. LXXIX (June 1969), where it is argued that research and development expenditure in an economy’s ‘productivity sector’ produces technical progress as an ‘output’.Google Scholar
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