Author(s):  Ariga, Joshua


The article looks at technical change using a two-product model involving agricultural (A) and non-agricultural (N) output for an economy. The author makes four crucial assumptions; technical change affects the production of A only, it is a neutral change (non-saving in any input), the economy is closed (no international trade), and no adjustments allowed so as to enable static analysis.

Critique of “Agriculture and Technical Change” F.H Gruen, JPE 43(1961)