Biased Technological Progress and Labor Force Growth in a Dualistic Economy

Biased Technological Progress and Labor Force Growth in a Dualistic Economy*

Asian development in the 1970's is likely to take place under conditions quite different from those typical of the past two decades. These changing conditions will have an important influence on the research focus relating to growth and development. This paper examines two such changes. First, the population explosion of the 1940's and 1950's will be transformed into a labor force explosion in ...

A general equilibrium open economy model for emerging markets: Monetary policy with a dualistic labor market☆

a r t i c l e i n f o JEL classification: O11 E52 F41 Keywords: Small open emerging market Optimal monetary policy Dualism Inflation targeting Exchange rate An optimizing model of a small open emerging market economy (SOEME) with dualistic labor markets and two types of consumers, delivers a tractable model for monetary policy. Differences between the SOEME and the SOE are derived. Parameters d...

Economic Growth and Business Cycles: The Labor Supply Decision with Two Types of Technological Progress

An informal model is described that leads to multiple macroeconomic equilibria as a consequence of random variation in the relative amounts of technological change for new and existing goods. The novel observation is that the rate of introduction and market penetration of new goods (sometimes called product innovation) vis-à-vis technological advance for existing goods (sometimes called process...

Further results on the macroeconomic effects of AIDS: the dualistic, labor-surplus economy.

Analyses by Cuddington in 1993 and forthcoming work from Cuddington and Hancock model the macroeconomic effects of the AIDS epidemic using a modified Solow growth model. This single-sector framework rests upon the assumption that labor and capital are always efficiently allocated throughout the economy with neither market failures nor policy-induced distortions resulting in resource misallocat...

Chapter 4 Technological Progress and Economic Growth