Technology Evolution and its Repercussions on the Social Welfare in a General Equilibrium Model

In this article, we consider a neoclassical production economy in which, unlike the generally static classical approach, we assume that, in response to technological change, the productive sector modifies -evolves- over time. We will analyze how this change affects economic welfare. We will show that changes in technology, in most cases, imply continuous changes in the economic structure, that is, continuous changes in equilibrium prices and consequently in individual consumption and production plans, although, as we will also show, in certain cases, small technological changes can lead to abrupt and unexpected changes in the behavior of economies, significantly affecting equilibrium prices and therefore individual plans for the consumption and production of goods. This fact allows us to conclude that, considered in this way, economic crises can be the result of endogenous changes. in an economy with technological change. To illustrate the theory presented, we will analyze economies of two and three goods as particular cases.To exemplify technological evolution, we consider an S-shaped model. Based on which, we will analyze the economic dynamics and present examples that show the possible impacts of technological evolution on consumer welfare.• Keywords: General Equilibrium, neoclassical ownership private production economy, regular and singular economies, evolution, crisis.• JEL Classification: D5, D51, D58