ABSTRACT
This chapter introduces a fixed factor, land, and technical progress. It founds that with the complications cannot always expect the economy to tend towards a state of steady growth. It considers the case where there are three factors of production, capital stock, labour, and land, but there is no technical progress. The rate of profit will neither have to fall nor to rise indefinitely in our present model. The chapter discusses the models of economic growth which will lead to states of steady growth if there are only two factors and there is no technical progress; there are two factors and labour-expanding technical progress. It also discusses the models of economic growth which will lead to states of steady growth if there are two or three factors and unitary elasticities of substitution between the factors with or without any combinations of output-expanding labour-expanding, capital-expanding, and land-expanding technical progress.
