Patterns of technical change: a geometrical analysis using the wage–profit rate schedule

Abstract

In this paper we examine some basic stylized facts of economic growth according to the modern restatement of the classical theory of income distribution. In particular, we make use of a wage–profit frontier in order to explore the patterns of technical change experienced by a set of 18 industrialized economies, during the last 40 years. Our main purpose is to document the evolution of technical change. Using empirical evidence from the Italian industry, we also make an attempt to provide an explanation to data from a classical perspective, alternative to the standard approach founded on the aggregate production function.

Keywords:

• fossil production function
• Marx‐biased technical change
• wage–profit rate schedule

JEL classifications:

• E11
• O40
• O52

Acknowledgements

I would like to thank Andrea Ginzburg and two anonymous referees for insightful comments on a previous draft of the paper. All remaining errors are mine.