Tasks, Technology, and Factor Prices in the Neoclassical Production Sector

Reference : Tasks, Technology, and Factor Prices in the Neoclassical Production Sector


	Document type :	E-prints/Working papers : Already available on another site
	Discipline(s) :	Business & economic sciences : Macroeconomics & monetary economics
	To cite this reference:	http://hdl.handle.net/10993/45268

Title :	Tasks, Technology, and Factor Prices in the Neoclassical Production Sector
Language :	English
Author, co-author :	Irmen, Andreas [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM) >]
Publication date :	2020
Collection and collection volume :	CESifo Working Paper No. 8353, June 2020
Peer reviewed :	No
Keywords :	[en] technical change ; factor prices ; factor-specific tasks ; neoclassical production
Abstract :	[en] This paper introduces tasks into the neoclassical production sector. Competitive firms choose the profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies. We show that the effect of factor-augmenting technical change on relative and absolute factor prices can be decomposed into a productivity effect and a task-demand effect of opposite sign. These effects appear since the novel task-based approach distinguishes between the demands for tasks and the demands for factors. This perspective provides a new intuition for the emergence of relative and absolute factor biases and the role of the elasticity of substitution.
Target :	Researchers
Permalink :	http://hdl.handle.net/10993/45268
source URL :	https://ideas.repec.org/a/kap/jeczfn/v131y2020i2d10.1007_s00712-020-00705-9.html

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