Introduction of New Technology with a Sound Transition of the Input-Output Structure
- 1 March 2002
- journal article
- research article
- Published by Informa UK Limited in Economic Systems Research
- Vol. 14 (1), 89-94
- https://doi.org/10.1080/09535310220111842
Abstract
We examine the general equilibrium repercussions associated with the introduction of new technologies, using the generalized Leontief system that allows technological substitutions. We show that an untested introduction of cost-increasing technologies in any industry may result in creating a non-productive technological structure that does not satisfy the Hawkins-Simon condition, following the autonomous dynamic adjustment process with structural transitions in the economic system. Therefore, we propose a practicable control scheme of introducing cost-increasing technologies that strictly avoids the creation of non-productive structures in all periods of structural transition, using the available information on the ex ante technological structure.Keywords
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