Steady-state growth can be generated, as we have seen, by capital accumulation in conjunction with a growing labour force, even in the absence of technical progress. But technical progress is an important and perhaps the main factor making for growth. Technical progress simply implies that increased output can be obtained over time from given resources of men and machines. But it can take a variety of forms and our purpose now is to define and distinguish some of the simpler varieties.
KeywordsLabour Force Production Function Capital Stock Technical Progress Constant Return
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