Technical change

i was write on this subject please read my past blog then read this blog.

Technical change or progress consists of discovering new methods of production.developing new products and introducing new techniques.Technical change is synonymous with a change in the production function.when there is technecial change,it leads to an increase in the productivity of labour and capital,assuming only two inputs.this is represented diagrammatically by a shift towards the origin and even a change in the slope if the isoquant.this signifies that more output can be produced either with the same inputs or with fewer inputs.

a technical change is said to be neutral when it is neither capital-saving nor labour saving.on the contrary non neutral technical change is either capital saving or labour saving.in the literature on growth economics the two important definitions.