Evidence for the United States suggests balanced growth despite falling investment-good prices and less than unitary … elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa ….s theorem to show that introducing human capital accumulation in the standard way does not resolve the puzzle. However, balanced …

Capital-labor substitution and total factor productivity (TFP) estimates are essential features of growth and income … favor of general factor augmentation with a non-negligible capital-augmenting component. Finally, we draw some important …