In this paper, I show that labour-saving or capital-saving technical progress is induced by the distribution of income between capital and labour. In the long run, technical progress is Harrod neutral. The long-run equilibrium factor income distribution is determined by a parameter of the...

type="main" xml:id="geer12030-abs-0001" <title type="main">Abstract</title> <p>Modernized Austrian capital theory implies: in capital market equilibrium without public debt the average period of production equals the average waiting period of households. In the twenty-first century and for the OECD plus China area,...</p>