Said of a technological change or technological difference if one production function produces the same as if it were the other, but with a larger quantity of capital. Same as factor augmenting with capital the augmented factor. Also called Solow neutral.
Found on
http://www-personal.umich.edu/~alandear/glossary/c.html
One of the ways in which an effectiveness variable could be included in a production function in a Solow model. If effectiveness A is multiplied by capital K but not by labor L, then we say the effectiveness variable is capital-augmenting. For example, in the model of output Y where Y=(AK)
aL
1-a the effe...
Found on
http://www.econterms.com/glossary.cgi?query=capital-augmenting
No exact match found.
