Note on reswitching and capital reversing
Item Type:Journal article
Citation:J.E. Woods, 'Note on reswitching and capital reversing', Economic and Social Research Institute, Economic and Social Review, Vol. 10, No. 1, 1978, 1978, pp85-96
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It is well known that, in the context of a stationary economy, reswitching of techniques implies capital reversing and that capital reversing can occur without reswitching. The aim of this paper is to discuss these two conclusions in the context of an economy experiencing steady growth at an arbitrary feasible rate. Some implications for the production function and aggregate growth theory are drawn. The discussion is conducted within the framework of a fixed-coefficients, two-sector model (after Garegnani), the mainly geometrical argument being based on the wage curve and the consumption-growth curve.
Author: Woods, J.E.
Publisher:Economic and Social Research Institute
Type of material:Journal article
Series/Report no:Economic and Social Review
Vol. 10, No. 1, 1978
Availability:Full text available