In a simple one-sector, two-class, fixed-proportions economy, wages are set through axiomatic bargaining a la Nash [1950]. As for choice of technology, firms choose the direction of factor augmentations to maximize the rate of unit cost reduction (Kennedy [1964], and more recently Funk [2002])....

In a simple Neoclassical Growth Model with endogenous technical change, I expand on the hypothesis of Induced Innovation including a production externality from a xed input, called `land', which represents the carrying capacity of the earth's atmosphere. Land is assumed to be congested by the...