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Output is produced at constant returns in a production function with two factors, capital and labour.
- To obtain unceasing growth, one must consider an external factor that increases the productivity of inputs over time. Exogenous technical progress T can then be integrated into the production function: Y = f (K, L, T)...
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Output is produced at constant returns in a production function with two factors, capital and labour.
- To obtain unceasing growth, one must consider an external factor that increases the productivity of inputs over time. Exogenous technical progress T can then be integrated into the production function: Y = f (K, L, T)...
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General points of the essay
Chapter 13 (Freeman Soete)
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