The Role of Technological Change

We develop an optimal growth model that includes several important new features. First, technological change is endogenously related to the growth of 'knowledge.' Investment may be directed either towards physical capital or knowledge (or both). Knowledge becomes an effective substitute fo...

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Main Authors: AYRES, Robert U., MILLER, Steven M.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 1980
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Online Access:https://ink.library.smu.edu.sg/sis_research/26
https://ink.library.smu.edu.sg/context/sis_research/article/1025/viewcontent/Role_Tech_Change_1980.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.sis_research-10252019-03-18T03:08:00Z The Role of Technological Change AYRES, Robert U. MILLER, Steven M. We develop an optimal growth model that includes several important new features. First, technological change is endogenously related to the growth of 'knowledge.' Investment may be directed either towards physical capital or knowledge (or both). Knowledge becomes an effective substitute for scarce resources by increasing the technical efficiency of resource utilization both for consumption and in capital. Nevertheless, a finite quantity resource must be embodied in capital and a finite flow is required for depreciation. Thus, there is an upper limit to technical efficiency and economic growth is thus ultimately limited by the availability of renewable resources. For a simple aggregate production function it is shown that technical efficiency never approaches unity on an optimal path. 1980-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/26 info:doi/10.1016/0095-0696(80)90027-3 https://ink.library.smu.edu.sg/context/sis_research/article/1025/viewcontent/Role_Tech_Change_1980.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Computer Sciences Technology and Innovation
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Computer Sciences
Technology and Innovation
spellingShingle Computer Sciences
Technology and Innovation
AYRES, Robert U.
MILLER, Steven M.
The Role of Technological Change
description We develop an optimal growth model that includes several important new features. First, technological change is endogenously related to the growth of 'knowledge.' Investment may be directed either towards physical capital or knowledge (or both). Knowledge becomes an effective substitute for scarce resources by increasing the technical efficiency of resource utilization both for consumption and in capital. Nevertheless, a finite quantity resource must be embodied in capital and a finite flow is required for depreciation. Thus, there is an upper limit to technical efficiency and economic growth is thus ultimately limited by the availability of renewable resources. For a simple aggregate production function it is shown that technical efficiency never approaches unity on an optimal path.
format text
author AYRES, Robert U.
MILLER, Steven M.
author_facet AYRES, Robert U.
MILLER, Steven M.
author_sort AYRES, Robert U.
title The Role of Technological Change
title_short The Role of Technological Change
title_full The Role of Technological Change
title_fullStr The Role of Technological Change
title_full_unstemmed The Role of Technological Change
title_sort role of technological change
publisher Institutional Knowledge at Singapore Management University
publishDate 1980
url https://ink.library.smu.edu.sg/sis_research/26
https://ink.library.smu.edu.sg/context/sis_research/article/1025/viewcontent/Role_Tech_Change_1980.pdf
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