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2 edition of Capital deepening in an economy with heterogenous capital goods found in the catalog.

Capital deepening in an economy with heterogenous capital goods

Edwin Burmeister

Capital deepening in an economy with heterogenous capital goods

by Edwin Burmeister

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Published by Wharton School of Finance and Commerce, Dept. of Economics in Philadelphia .
Written in English


Edition Notes

Statementby Edwin Burmeister and Stephen J. Turnovsky.
SeriesDiscussion paper / Wharton School of Finance and Commerce, Department of Economics -- No.209
ContributionsTurnovsky, Stephen J.
ID Numbers
Open LibraryOL13835020M

Intertemporal Equity and Efficient Allocation of P.J. HammondMaximin paths of heterogeneous capital accumulation and the instability of paradoxical steady states. Econometrica, 45 (), pp. Google Scholar. 2. E. Burmeister, S.J. TurnovskyCapital deepening response in an economy with heterogeneous capital goods. Amer. Econ. Rev Cited by: Capital deepening refers to an increase in the amount of capital per worker, either human capital per worker, in the form of higher education or skills, or physical capital per worker. Technology, in its economic meaning, refers broadly to all new methods of production, which includes major scientific inventions but also small inventions and.

Human Capital Deepening in the U.S. Rising levels of education for persons 25 and older show the deepening of human capital in the U.S. economy. Even today, relatively few U.S. adults have completed a four-year college degree. There is clearly room for additional deepening of human capital . Downloadable! Author(s): Daron Acemoglu & Veronica Guerrieri. Abstract: This paper constructs a model of non-balanced economic growth. The main economic force is the combination of differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector with a greater capital share (despite the equilibrium reallocation of capital and.

9 Some implications of capital heterogeneity Benjamin Powell* Introduction A tractor is not a hammer. Both are capital goods but they usually serve different purposes. Yet both can be used to accomplish more than one goal. A tractor can be used to plow a . response when we are confronted with a disaggregated economy witlh many heterogeneous capital goods. A slightly generalized definition has been made available by the Cambridge approach,3 in which a capital deepening response is defined in terms of the change in the value of per worker capital goods stock. This definition has an advantage.


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Capital deepening in an economy with heterogenous capital goods by Edwin Burmeister Download PDF EPUB FB2

Capital Deepening Response in an Economy with Heterogeneous Capital Goods By EDWIN BURMEISTER AND STEPHEN J. IURNOVSKY* Capital deepening is an important con-cept in traditional capital theory. In a one-sector model it has an unambiguous definition, describing an increase in the physical capital-labor ratio.

Moreover, the. Capital deepening is an important con- cept in traditional capital theory. In a one-sector model it has an unambiguous definition, describing an increase in the physical capital-labor ratio Cited by: Capital deepening response in an economy with heterogeneous capital goods.

Capital deepening is an important con- cept in traditional capital theory. In a one-sector model it has an unambiguous definition, describing an increase in the physical capital-labor : Edwin Burmeister and S. J Turnovsky. Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): ?si (external link)Author: Edwin Burmeister and Stephen J Turnovsky.

Burmeister, E. and N.V. Long,On some unresolved questions in capital theory: An apphcation of Samuelson's correspondence principle, Quarterly Journal of Econom Burmeister, E. and S.J. Turnovsky,Capital deepening in an economy with heterogeneous capital goods, American Economic Rev Cited by: 6.

Part of the The New Palgrave book series (NPA) Abstract. In realistic Burmeister, E. Real Wicksell effects and regular economies.

In Essays in Modern Capital deepening response in an economy with heterogeneous capital goods. American Economic Rev December, – Google Scholar. Kuga, K. More about joint production. Definition capital widening. means that the capital stock will increase at the same rate as the labour force and lead to constant labour productivity (output per worker).

Capital widening involves greater investment to make use of existing technology and increase the amount of capital available. Capital deepening attempts to increase output through better technology and higher output per worker, for example, a new technology which makes capital.

As it becomes clear in this work, Menger would have opposed all attempts to define capital as a heterogeneous structure of higher-order goods - A definition that is associated with his name : Eduard Braun. In realistic economic models with n different types of capital goods, the value of the capital stock is $$ V={\displaystyle \sum_{i=1}^n{P}_i{K}_i} $$ where P i is the price of the i th capital good in terms of some numéraire.

shares of capital) combined with capital deepening lead to nonbalanced growth because an increase in the capital-labor ratio raises output more in sectors with greater capital intensity.

We illustrate this economic mech-anism using an economy with a constant elasticity of substitution be. Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity.

Capital deepening is often measured by the rate of change in capital stock per labour hour. Acemoglu and Guerrieri () show for a two-sector economy that capital deepening, i.e.

an increase in the economy-wide capital intensity tends to raise the output share of the capital-intensive. Capital Deepening and Non-Balanced Economic Growth Daron Acemoglu MIT Veronica Guerrieri University of Chicago First Version: May This Version: March Abstract We present a model of non-balanced growth based on di⁄erences in factor proportions and capital deepening.

Capital deepening increases the relative output of the more capital. Downloadable (with restrictions). We present a model of nonbalanced growth based on differences in factor proportions and capital deepening. Capital deepening increases the relative output of the more capital-intensive sector but simultaneously induces a reallocation of capital and labor away from that sector.

Using a two-sector general equilibrium model, we show that nonbalanced growth is. capital deepening. increases in an economy's stock of capital (buildings and equipment) relative to its workforce.

technological progress. economy operates more efficiently, producing more output, but without using any more inputs such as capital or labour. human capital. A situation when the capital stock grows at the same rate as the labour force, so that the capital–labour ratio remains constant, while the aggregate output continues to grow.

See also capital deepening. proportionsacrosssectors(i.e.,differentsharesofcapital)combinedwithcapitaldeepening 'All data are fromtheNational Income andProductAccounts(NIPA).For details and definitionsofservices, manufacturing,employment, real GDP and capitalshare,see Appendix B.

1With capital deepening an increase in the ratio of capital and labor used in production is meant here. 2E.g. Helpman, Melitz and Yeaple () or Grossmam, Helpman and Szeidl (). 3Horizontal FDI corresponds to the situation where a firm serves the foreign market by producing.

6 Figure 3: Reverse capital deepening According to the neoclassical doctrine1, the substitution should always ‘deepen’ the intensity of capital, whenever the wage rate w increases relatively to the rate of profit r. Reverse capital occurs, if the exact opposite takes place: A rise in the rate of profit r leads to the adoption of a more capital intensive technique.

The details of his argument, which extends over most of a dense pages, is beyond the scope of this article but has to do with the economic effect of capital deepening. He argues that in industrialized and post-industrial economies, the infusion of capital produces wealth at a growth rate that exceeds the growth rate of the broader economy.

Labor's share of the wealth : Mike Moffatt. Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity.

Capital deepening is often measured by the rate of change in capital stock per labour hour. Overall, the economy .Figure Human Capital Deepening in the U.S. Rising levels of education for persons 25 and older show the deepening of human capital in the U.S.

economy. Even today, under one-third of U.S. adults have completed a four-year college degree. There is clearly room for additional deepening of human capital .Capital deepening refers to an increase in the proportion of the capital stock to the number of labor hours worked. Movements in this ratio are closely tied to movements in labor productivity, all other things held equal.

An increase in capital per hour (or capital deepening) leads to an increase in labor productivity.