A microfoundation for normalized CES production functions with factor-augmenting technical change

作者：Growiec Jakub^*

来源：Journal of Economic Dynamics and Control, 2013, 37(11): 2336-2350.

DOI：10.1016/j.jedc.2013.06.006

• CES production function
• Weibull distribution
• Optimal technology choice
• Direction of technical change
• Directed R& D

Based on a tractable "endogeneous technology choice" framework, we provide a microfoundation for aggregate normalized constant elasticity of substitution (CES) production functions with non-neutral, factor-augmenting technical change. In this framework, firms are allowed to choose unit productivities of capital and labor optimally from a technology menu constructed under the assumption that unit factor productivities (UFPs) are independently Weibull-distributed. The Weibull distribution itself is also microfounded here: based on extreme value theory, it is found to be an accurate and robust approximation of the true UFP distribution if technologies consist of a large number of complementary components.

• 出版日期2013-11