Technical Progress and Economic Growth

A Two-Sector Disequilibrium Model: Two Three and Multisector Models in the Economic Literature.- Multisector models and dynamic analysis; General outline of the model; Assumptions of the Model.- Common features of the two sectors; The consumption goods sector; The capital goods sector; The Equations of the Model.- Common features of both sectors; The consumption goods sector; The capital goods sector; The Dynamical System.- Relative variables and profitability conditions; The dynamical system under normal conditions; Dynamical system when profits fall; The dynamical system during the slump; The dynamical system when profit rates are far from equilibrium; The dynamical system during the rationing of capital goods; Growth and Business Cycles: Evolution of the Economy under Normal Conditions.- Equilibrium points; Evolution of the system in a neighborhood of an equilibrium point; Expansion and depression; Depression and Expansion Regimes.- Evolution of the depression; Evolution of the expansion; Technical Progress and Economic Fluctuations.- Different cases of technical progress; An increase of labor productivity in the consumption goods sector; An incrase of capital productivity in the consumption goods sector; An increase of labor productivity in the capital goods sector; An increase of the capital productivity in the capital goods sector; Stabilization Policies: Unstable Growth Paths and Effectiveness of Fiscal Policies.- Instability in multisector models; The role of the government; Further Equations.- The government; The consumption goods sector; The capital goods sector; Dual income tax; Balancing the Budget: Equilibria and Stability.- Evolution of the main variables; Local dynamics; Expansion and depression; Anti-inflationary Policies.- Effects of a rise of the consumption tax rate; Effects of a rise in the profit tax; Expansionary Policies.- Effects of a tax cut; Effects of the introduction of unemployment benefits; The Open Economy: Importing from a Developing Country: Industrialization in an Open Economy.- Large country and small country; Dual structure of the small country; The modern sector in the small country; The Developed Country and the Developing one.- The new industrial sector in the small country; Early phase and further phase; Perturbation of Equilibria and Stabilization Policies; the Early Phase.- Large and small country during the early phase; The dynamical system; Equilibrium and fiscal policies; Perturbation of Equilibria and Stabilization Policies: the Further Phase.- Catching up and falling behind; Large and small country during the further phase; The dynamical system; Equilibrium and fiscal policy; Technical progress in the open economy; Remarks and Open Problems.- Fiscal policy of the developed country and expansion of the new industrial sector in the developing country; Fiscal policy of the developed country, budget and trade balance deficit; Conclusions.- Appendices.- List of Figures.- List of Symbols.- References.