Age Structure of Population and China’s Provincial Technical Progress Direction
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| Title | Age Structure of Population and China’s Provincial Technical Progress Direction
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| Author | DENG Ming |
| Organization | School of Economics, Xiamen University;Institute for Urban and Environmental Studies, Chinese Academy of Social Science |
| Email | dengming@xmu.edu.cn |
| Key Words | Age Structure of Population; Direction of Technical Progress; Factor Price Distortion; Normalized Supply-Side System |
| Abstract | Directed technical progress is an important influencing factor on the distribution of income share, but there are few researches about the influencing factor on the technical progress direction. Based on a discrete time OLG model which endogenizing the factor bias technical progress, this paper analyses the effects generated by old-age dependency ratio to the technical progress direction. The theoretical model shows that the rise of old-age dependency ratio will generating technical progress bias to labor. Based on normalized supply-side system method, this paper measures the Chinese provincial technical progress direction in 1990-2010 and estimates the affect of old-age dependency ratio to technical progress direction. Empirical research shows that the relation between old-age dependency ratio and technical progress direction is not distinctive if we do not control the influence of factor price distortion. But if we control the influence of factor price distortion, then the rise of old-age dependency ratio will bring the technical progress bias to labor. Meanwhile, labor price distortion will bring the technical progress bias to capital. |
| Serial Number | WP617 |
| Time | 2014-08-05 |
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