Overtakable Capitalist Growth Paths

Abstract

Comparing a process of labor-and capital-augmenting technical change directed by capitalists' maximization of profits with a counterfactual in which decentralized innovation decisions are governed by noncapitalist property relations, I claim that if the two economies start from the same technology and capital stock there's a date T such that after T per-capita consumption is always strictly greater on the counterfactual.Directed technical change, golden rule, growth-distribution duality JEL numbers E25, O31, O41. * I thank Duncan Foley for his comments on a draft.