Technological change is examined in a model of capital production to show that “creative destruction” can occur as an outcome of firm’s optimizing behavior. Capital systems are made up of components that are necessary for them to operate and that have uncertainty with respect to durability. For each type of technological change agents make a corresponding decision about whether to continue to u...

This work provides an explanation for the puzzling trade-off between labor productivity and capital accumulation, occurred in Italian energy sector from the late 1980s onwards. By using a vector autoregressive model, we decompose labor productivity into technological and non technological shocks. We find that: (1) labor productivity responds positively to technological shocks, leading to a tran...

India has concertedly endeavored to upgrade the technological base of production from 1956 to the mid 1970’s. Thereafter, the process somehow appears to have slowed down resulting in technological stagnation, which extended right upto the late eighties. The nineties were an era of improvement in technology and managerial practices that bore results in the period of globalisation and liberalizat...

We construct a general equilibrium version of the Krusell et al. Econometrica 68, 1029, 2000 model with capital–skill complementarity. We assume several sources of growth simultaneously: exogenous growth of skilled and unskilled labour, equipment-specific technological progress, skilled and unskilled labouraugmenting technological progress and Hicks-neutral technological progress. We derive res...

this research, which is practical and descriptive-correlational in terms of purpose and data collection, respectively, evaluates the effect of intellectual capital on the process of technological entrepreneurship (pte). the research population includes the managers and experts working in the iranian research organization for science and technology, which are 375 individuals. using stratified sa...

Most growth models assume capital is homogeneous with regard to technology. This contradicts intuition and empirical evidence that the majority of technology is embodied in the capital stock. Berger (2001) showed that neoclassical vintage capital (embodied technology) and non-vintage capital (disembodied technology) models have different convergence rates, although identical steady state growth...

We develop and apply a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining wellbeing over time. Our approach differs from earlier approaches by concentrating on wealth rather than income. Sustainability is demonstrated by showing that a properly defined comprehensive measure of wealth is maintained through time. Our wealth measu...

We study firms' optimal investment behavior in a dynamic duopoly framework. Embodied technological progress makes later generations more productive. The resulting model is a differential game combined with a vintage capital goods structure. Since such a framework has not been analyzed before, existing concepts have to be modified. Our numerical analysis first shows that a technological breakthr...