Harrod-Neutral Technical Progress

Harrod-Neutral Technical Progress

Improvements in technology that increase the efficiency of labor. That is, harrod-neutral technical progress allows producers to make more with less. This generally results in lower expenses and, on a large scale, it can spur economic growth. However, it can also cause unemployment by making employees with certain skills unnecessary.
References in periodicals archive ?
We adopt Weil's (1989) set-up of infinitely-lived households extended by Harrod-neutral technical progress.
Before proceeding to use the model to analyze the effects of a temporary increase in the rate of Harrod-neutral technical progress, it will be useful to understand the steady-state properties of the model.
The reason we have worked with Harrod-neutral technical progress is that we want to have a model which has a steady state that is consistent with the broad stylized facts of growth.