Technological Change, Growth and Decline in a Post-Keynesian Perspective - The role of technological change has been investigated in New Growth Theory as in post-keynesian models. In the first approach technological change comes from optimizing behaviour of the agents and, following the growth accounting method, it can be calculated as Solow residual. The modern version of Solow residual is total factor productivity (tfp). Using tfp means to believe that all countries (advanced and less advanced) are on the same production function and that there aren’t any market constraints to growth. An alternative tool, discussed in the paper, to explain differences in economic performances is the augmented technical progress function (atpf). The atpf allows us to account for market constraints that could bite log before supply constraints become operative.
Jel Code: E12, E13, E22, F43