Hicks-neutral technical change: Difference between revisions

Content deleted Content added

Inline

Revision as of 22:54, 5 May 2012

A Hicks-neutral technical change is a change in the production function of a business or industry which satifies certain economic neutrality conditions. The concept of Hicks neutrality was first put forth in 1932 by John Hicks in his book The Theory of Wages.^[1] A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products production function. More formally, given the Solow model production function

Y=A*F(K,L)\,

,

a Hicks-neutral change is one which only changes $A$ .^[2]

References

^ Wood, John Cunningham (1989). Sir John R. Hicks: Critical Assessments. Routledge. p. 231. ISBN 0-415-01272-4. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
^ Mike Moffatt. "Hicks-Neutral/ Hicksian Neutrality". About, Inc.

This economics-related article is a stub. You can help Wikipedia by expanding it.

[critical-assessments-1] Wood, John Cunningham (1989). Sir John R. Hicks: Critical Assessments. Routledge. p. 231. ISBN 0-415-01272-4. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)

[about-2] Mike Moffatt. "Hicks-Neutral/ Hicksian Neutrality". About, Inc.

[1]

[2]

@@ Line 1: / Line 1: @@
-A '''Hicks-neutral technical change''' is a change in the [[production function]] of a business or industry which satifies certain [[economic neutrality]] conditions.  The concept of Hicks neutrality was first put forth in 1932 by [[John Hicks]] in his book ''The Theory of Wages''.<ref name=critical-assessments>{{Cite book | title = Sir John R. Hicks: Critical Assessments | coauthors = Wood, John Cunningham; Woods, Ronald N. | year = 1989 | publisher = Routledge | isbn = 0415012724 | pages = 231 | url = http://books.google.com/?id=bhccDLumYZ8C | author1 = Wood, John Cunningham}}</ref>  A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products [[production function]].  More formally, given the [[Solow model]] production function
+A '''Hicks-neutral technical change''' is a change in the [[production function]] of a business or industry which satifies certain [[economic neutrality]] conditions.  The concept of Hicks neutrality was first put forth in 1932 by [[John Hicks]] in his book ''The Theory of Wages''.<ref name=critical-assessments>{{Cite book | title = Sir John R. Hicks: Critical Assessments | coauthors = Wood, John Cunningham; Woods, Ronald N. | year = 1989 | publisher = Routledge | isbn = 0-415-01272-4 | pages = 231 | url = http://books.google.com/?id=bhccDLumYZ8C | author1 = Wood, John Cunningham}}</ref>  A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products [[production function]].  More formally, given the [[Solow model]] production function
 :<math>Y = A * F(K,L) \,</math>,
 a Hicks-neutral change is one which only changes <math>A</math>.<ref name=about>{{Cite web | title = Hicks-Neutral/ Hicksian Neutrality | author = Mike Moffatt | publisher = About, Inc. | url = http://economics.about.com/library/glossary/bldef-hicks-neutral.htm}}</ref>
 ==Further reading==
-* {{Cite book | title = The Theory of Wages | last = Hicks | first = John Richard | year = 1966 | publisher = St. Martins Press | url = http://books.google.com/?id=6PdAAAAAIAAJ | origyear = 1932 | isbn = 0333027647}}
+* {{Cite book | title = The Theory of Wages | last = Hicks | first = John Richard | year = 1966 | publisher = St. Martins Press | url = http://books.google.com/?id=6PdAAAAAIAAJ | origyear = 1932 | isbn = 0-333-02764-7}}
 * {{Cite journal | title = Hicks Neutral Technical Change Revisited: CES Production Function and Information of General Order | last = Dupuy | first = Arnaud | journal = Topics in Macroeconomics | year = 2006 | volume = 6 | issue = 2 | pages = 1339 | doi = 10.2202/1534-5998.1339 }}

Revision as of 22:54, 5 May 2012

Further reading

See also

References