McAdam, Peter (contributor); Willman, Alpo (contributor) - 2008
We develop a framework for analyzing "medium-runʺ departures from balanced growth, and apply it to the economies of … continental Europe. A time-varying factor-augmenting production function (mimicking "directedʺ technical change) with a below …-unitary substitution elasticity coupled with supporting short-run factor demands (and price setting) is shown to account for the observed …