【主题】A Theory of Factor Shares Cycles
【摘要】In US data factor shares have a strong and persistent medium run cyclical pattern: a phase when the labor share decreases is always followed by a labor share increasing phase. Labor share decline is typically associated with a fast-growing labor productivity, and slow-growing wage rate and working hours. We argue that this can be explained by a model of endogenous growth in which it is desirable to take advantage of an existing technology until diminishing returns make it profitable to move on to a new technology. In this model the endogenous interaction between relative factor prices and labor-saving innovations is the source of both long run growth and medium run cycles.