The Consequence of the Modern Universal Growth Theory (MUGT) with respect to homogeneous degree 1 CES functions

In 2018 we adapted the implementation of technical growth to correct the Solow growth model. Within this article, we delve into some of the consequential aspects of this Modern Universal Growth Theory (MUGT) with respect to homogeneous degree 1 CES production functions. In particular, we demonstrate, that the well known Cobb Douglas and CES production functions can serve as the fi rst and second order approximation of any arbitrary production function, respectively. Furthermore, contrary to what you can find in literature, we show that technical progress in the MUGT is always labor saving. Also interesting is the point that even a negative elasticity of substitution is allowed.