Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296858 
Year of Publication: 
2023
Series/Report no.: 
ISER Discussion Paper No. 1215
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We prove a generalized, multi-factor version of the Uzawa steady-state growth theorem, Balanced growth with capital-augmenting technical change is possible when capital has a unitary elasticity of substitution with at least one other factor of production, Thus, a neoclassical growth model with three or more factors of production can be consistent with empirical evidence on both the capital-labor elasticity of substitution and the declining price of investment relative to consumption, In a three-factor model calibrated to US data, medium-run fluctuations in the investment price explain labor share movements from 1960-2000, but not the subsequent fall in the labor share.
Subjects: 
Balanced Growth
Uzawa Steady-State Growth Theorem
Technological Change
Land
Natural Resources
JEL: 
E13
E22
O33
O41
Document Type: 
Working Paper

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