Investment-specific technological progress

[2] If "investment-specific" technological change is the main source of progress in an industry, then the individual would invest in firms to purchase and develop new capital, as technological improvements result in improvements to the goods available to consume.

[4] Women have been able to break away from the traditional "housewife" role, join the labor-force in greater numbers and become less economically dependent on men.

Through regular technological investment the microwave industry has developed into a competitive market, with small compact units in many households.

In particular, "investment-specific" technological advance has affected the prices of two inputs into the production process: equipment and structures.

Figure 2 (the pink line) shows how the price of new producer durables (such as equipment) in the United States relative to the price of new consumer nondurables has consistently declined over the past fifty years.

When changes in quality are not taken into account the apparent price of equipment undergoes a smaller reduction (see the black line in Figure 2).

Figure 1
Figure 2
Figure 3