Zuleta, Hernando; Alberico, Santiago - UNIVERSIDAD DEL ROSARIO - 2007
We consider a model of factor saving innovations and study the effects of exogenous changes in labor supply. In a …, incentives for labor saving and capital using innovations appear. By the same token, exogenous changes in labor supply affect … factor prices. In general, a reduction in labor supply decreases current output and generates incentives for labor saving …