01803cas a2200241 a 4500 AALejournalIMF007568 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846300 1018-5941 BD-DhAAL BD-DhAAL Rowthorn, Bob. Unemployment, Capital-Labor Substitution, and Economic Growth / Bob Rowthorn. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses the influence of economic growth on the equilibrium unemployment rate (NAIRU). It examines how income distribution and the NAIRU are influenced by capital formation, technical progress, and labor force expansion, and how these factors' impact depends on the elasticity of substitution between capital and labor. The paper distinguishes between the short-run NAIRU when capital stock is exogenous, and the long-run NAIRU when it is endogenous. It also considers how the analysis must be modified to take into account Keynesian ideas concerning the role of aggregate demand. It concludes that unless the capital stock grows in line with labor supply in efficiency units, the short-run NAIRU will increase, reducing the scope for demand stimulation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/043 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/043/001.1999.issue-043-en.xml IMF e-Library