ABSTRACT
Neutral and non-neutral technical changes have thus been defined in terms of the influence of the technical change on the respective factor inputs. The models proposed will postulate a pattern of technical change in terms of its effects on final goods and services, without specifying what this pattern may imply for the factors used in obtaining the final outputs. The induced technical innovations models, particularly those on a micro-economic scale, apparently can be most easily transformed to accommodate environmental resources. Technical change means simply that the productive technology underlying the economist’s production function has changed. The importance of common property resources to models with autonomous technical change hinges upon the degree to which factor hiring decisions are joint. Economists have approximated complex technological relationships with relatively simple functional forms linking broadly defined factor inputs and the output.
