Steady State, Factor Income, and Technological Progress

2021 ◽  
pp. 57-82
Author(s):  
Karl Farmer ◽  
Matthias Schelnast
Keyword(s):  
Steady State ◽  
Technological Progress ◽  
Factor Income ◽  
State Factor

scholarly journals AUTOMATION, STAGNATION, AND THE IMPLICATIONS OF A ROBOT TAX

2020 ◽  
pp. 1-32 ◽  
Author(s):  
Emanuel Gasteiger ◽  
Klaus Prettner
Keyword(s):  
Steady State ◽  
Economic Impact ◽  
Technological Progress ◽  
Overlapping Generations ◽  
Investment Decisions ◽  
Cautionary Tale ◽  
Overlapping Generations Model ◽  
Long Run ◽  
Per Capita ◽  
Capita Output

We assess the long-run growth effects of automation in the overlapping generations framework. Although automation implies constant returns to capital and, thus, an AK production side of the economy, positive long-run growth does not emerge. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long-run growth is possible even without technological progress. Our analysis therefore provides a cautionary tale that the underlying modeling structure of saving/investment decisions matters for the derived economic impact of automation. In addition, we show that a robot tax has the potential to raise per capita output and welfare at the steady state. However, it cannot induce a takeoff toward positive long-run growth.

FACTOR SUBSTITUTION AND ECONOMIC GROWTH: A UNIFIED APPROACH

2012 ◽  
Vol 16 (4) ◽  
pp. 625-656 ◽  
Author(s):  
Jianpo Xue ◽  
Chong K. Yip
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Growth Models ◽  
Elasticity Of Substitution ◽  
Unified Approach ◽  
Factor Income ◽  
Factor Substitution ◽  
State Income ◽  
Per Capita ◽  
Relative Scarcity

This paper provides a unified approach to characterizing the relation between factor substitution and economic growth in different one-sector growth models (namely, the Solow, Ramsey, and Diamond models). Our main finding is that if better factor substitution raises savings in the steady state, then a higher per capita income results. There are two channels by which factor substitution affects savings: the positive efficiency effect via income and the ambiguous distribution effect via factor income shares. If the efficiency effect dominates, then a higher elasticity of substitution leads to a higher level of per capita steady-state income. In transition, factor substitution affects the rate of convergence both directly and through the equilibrium profit share. The former arises from diminishing marginal productivity of capital whereas the latter reflects its relative scarcity. Depending on the interaction of these effects, the net outcomes are characterized.

scholarly journals Double-Counting of Investment*

2021 ◽  
Author(s):  
Robert J Barro
Keyword(s):  
Steady State ◽  
Sustainable Consumption ◽  
National Income ◽  
Permanent Income ◽  
Labor Income ◽  
Alternative Measure ◽  
Double Counting ◽  
Long Run ◽  
Factor Income ◽  
Current Value

Abstract The national-income accounts double-count investment, which enters once when it occurs and again in present value as rental income on added capital. The double-counting implies that GDP and national income overstate sustainable consumption. An alternative measure, ‘permanent income,’ equals consumption in the steady state but deviates from consumption outside of the steady state because expensing of gross investment applies to the long-run flow, not the current value. The permanent-income perspective substantially affects measured factor-income shares. When computed in relation to permanent income, the U.S. labor-income share has been reasonably stable, in contrast to the declining share based on GDP.

scholarly journals Double-Counting of Investment*

2021 ◽  
Author(s):  
Robert J Barro
Keyword(s):  
Steady State ◽  
Sustainable Consumption ◽  
National Income ◽  
Permanent Income ◽  
Labor Income ◽  
Alternative Measure ◽  
Double Counting ◽  
Long Run ◽  
Factor Income ◽  
Current Value

Abstract The national-income accounts double-count investment, which enters once when it occurs and again in present value as rental income on added capital. The double-counting implies that GDP and national income overstate sustainable consumption. An alternative measure, ‘permanent income,’ equals consumption in the steady state but deviates from consumption outside of the steady state because expensing of gross investment applies to the long-run flow, not the current value. The permanent-income perspective substantially affects measured factor-income shares. When computed in relation to permanent income, the U.S. labor-income share has been reasonably stable, in contrast to the declining share based on GDP.

Model of Optimal Economic Growth with Endogenous Bias

1999 ◽  
Vol 3 (3) ◽  
pp. 293-310 ◽  
Author(s):  
Ryuzo Sato ◽  
Rama V. Ramachandran ◽  
Cheng Ping Lian
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Technological Progress ◽  
Growth Models ◽  
Sufficient Conditions ◽  
Optimal Economic Growth ◽  
The Cost ◽  
Factor Shares

The objective of the paper is to develop a model of optimal endogenous technological progress that will exhibit two properties sought in growth models: (1) The bias will depend on the parameters of the model—particularly those affecting the cost of inputs—instead of being constrained to be Harrod neutral; (2) factor shares will be constant in steady state. Using previously derived sufficient conditions, we show the conditions under which such a model can be constructed.

Studies on Water in the Hydration Chamber of a Modified Electron Microscope

1970 ◽  
Vol 28 ◽  
pp. 544-545
Author(s):  
R. C. Moretz ◽  
G. G. Hausner ◽  
D. F. Parsons
Keyword(s):  
Thin Film ◽  
Thin Films ◽  
Electron Microscope ◽  
Steady State ◽  
Room Temperature ◽  
Small Mass ◽  
Equilibrium Pressure ◽  
Biological Objects ◽  
Mechanical Pump ◽  
Differential Pumping

Use of the electron microscope to examine wet objects is possible due to the small mass thickness of the equilibrium pressure of water vapor at room temperature. Previous attempts to examine hydrated biological objects and water itself used a chamber consisting of two small apertures sealed by two thin films. Extensive work in our laboratory showed that such films have an 80% failure rate when wet. Using the principle of differential pumping of the microscope column, we can use open apertures in place of thin film windows.Fig. 1 shows the modified Siemens la specimen chamber with the connections to the water supply and the auxiliary pumping station. A mechanical pump is connected to the vapor supply via a 100μ aperture to maintain steady-state conditions.

Continuous hydrogenolysis of acetal-stabilized lignin in flow

2021 ◽  
Author(s):  
Wu Lan ◽  
Yuan Peng Du ◽  
Songlan Sun ◽  
Jean Behaghel de Bueren ◽  
Florent Héroguel ◽  
...  
Keyword(s):  
Steady State ◽  
Challenges And Opportunities

We performed a steady state high-yielding depolymerization of soluble acetal-stabilized lignin in flow, which offered a window into challenges and opportunities that will be faced when continuously processing this feedstock.

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