The impact of technical change and profit on investment in Australian manufacturing

This paper combines Salter's analysis of capital-embodied technical change with Kalecki's analysis of financing investment from retained profits to provide a post-Keynesian model of investment with innovation, which is applied to data from Australian manufacturing industries. In the estima...

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Main Authors: Bloch, Harry, Courvisanos, Jerry, Mangano, Maria
Other Authors: Lynne Chester
Format: Conference Paper
Published: Society of Heterodox Economists, The University of New South Wales 2008
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/44370
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author Bloch, Harry
Courvisanos, Jerry
Mangano, Maria
author2 Lynne Chester
author_facet Lynne Chester
Bloch, Harry
Courvisanos, Jerry
Mangano, Maria
author_sort Bloch, Harry
building Curtin Institutional Repository
collection Online Access
description This paper combines Salter's analysis of capital-embodied technical change with Kalecki's analysis of financing investment from retained profits to provide a post-Keynesian model of investment with innovation, which is applied to data from Australian manufacturing industries. In the estimated model, profit is used as a measure of the ability to invest, and the rate of labour saving technical change embodied in new equipment (i.e. process innovation) reveals the inducement to invest. These two factors combine to explain the accumulation process and its link to technical progress.
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format Conference Paper
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:20:50Z
publishDate 2008
publisher Society of Heterodox Economists, The University of New South Wales
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spelling curtin-20.500.11937-443702022-12-07T06:50:50Z The impact of technical change and profit on investment in Australian manufacturing Bloch, Harry Courvisanos, Jerry Mangano, Maria Lynne Chester Michael Johnson Peter Kriesler Kalecki embodied technical change vintage capital Salter investment This paper combines Salter's analysis of capital-embodied technical change with Kalecki's analysis of financing investment from retained profits to provide a post-Keynesian model of investment with innovation, which is applied to data from Australian manufacturing industries. In the estimated model, profit is used as a measure of the ability to invest, and the rate of labour saving technical change embodied in new equipment (i.e. process innovation) reveals the inducement to invest. These two factors combine to explain the accumulation process and its link to technical progress. 2008 Conference Paper http://hdl.handle.net/20.500.11937/44370 Society of Heterodox Economists, The University of New South Wales fulltext
spellingShingle Kalecki
embodied technical change
vintage capital
Salter
investment
Bloch, Harry
Courvisanos, Jerry
Mangano, Maria
The impact of technical change and profit on investment in Australian manufacturing
title The impact of technical change and profit on investment in Australian manufacturing
title_full The impact of technical change and profit on investment in Australian manufacturing
title_fullStr The impact of technical change and profit on investment in Australian manufacturing
title_full_unstemmed The impact of technical change and profit on investment in Australian manufacturing
title_short The impact of technical change and profit on investment in Australian manufacturing
title_sort impact of technical change and profit on investment in australian manufacturing
topic Kalecki
embodied technical change
vintage capital
Salter
investment
url http://hdl.handle.net/20.500.11937/44370