Abstract
Progress is traditionally measured by the improvement of an economy's average characteristics from year to year. Some deeper insight might be gained by splitting the averages into explicit parameters for the new and old technologies at work within the same year, and recognising that innovative growth is driven just by the ‘potential difference’ between these two types of technology. Economic modelling in this light generates volatile development paths greatly resembling actual statistical time series, giving a holistic description of cycles, structural change, structural unemployment, relative price shifts and capacity utilisation issues. The paper expands the author's elaborations of the explicit-new-technology approach from prototype economies to that of the UK. Forecasts very close to reality are achieved including the 1992 cyclical decline. All this gives empirical support to the premise that the input–output method, if modified, could become a competitive tool for analysing ‘spontaneous’ market forces, as well as for direct planning. The need for separate statistical accounting of parameters for new technologies at macro- and industry-levels is substantiated.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.