We develop a general two-sided micro-matching framework with heterogeneous workers and machines that permits a complete analysis of neutral technical progress commonly used in neoclassical production theory, without a priori restrictions on the functional forms of the production technology. We use the concept of “production core” to determine stable task assignments and the corresponding factor...

This paper uses a production function approach to put the recent contribution of the New Economy to US economic growth into perspective by undertaking an analysis of the sources of technical progress in the business sector over the post-war period. We model jointly a pair of factor demand equations derived consistently from an underlying CES production technology, and explicitly endogenise tech...