Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296863 
Year of Publication: 
2023
Series/Report no.: 
ISER Discussion Paper No. 1220
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We construct a 3-factor, directed technical change growth model that ex-hibits capital-augmenting technical change on the balanced growth path (BGP), circumventing the issues usually caused by the 2-factor Uzawa growth theorem. We calibrate the model to the United States and consider a non-unitary elasticity of substitution between capital and labor. We show that the model converges to the BGP with capital-augmenting technical change from any initial condition. Our results indicate that natural resources and directed technical change play a central role in explaining balanced growth.
Subjects: 
Balanced Growth
Uzawa Steady-State Growth Theorem
Directed Technical Change (DTC)
Natural Resources
Three-Factor Model
JEL: 
E13
E22
O33
O41
Document Type: 
Working Paper

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