Technical progress where with any given factor proportions the average and marginal products of all factors increase in the same proportion. Thus if y = f(x, z), where y is output, x is labour and z is capital, and the function f(.) has constant returns to scale, output after Hicks-neutral technical progress where the productivity of each factor rises to λ >1 times its former level is given by y*(x, z) = f(λx, λz) = λy. This is contrasted with other definitions of neutrality, for example Harrod-neutral or pure labour-augmenting technical progress, where labour productivity rises but that of capital does not, so that output after technical progress is given by y*(x, z) = y(λx, z).

• health service
• Heckscher-Ohlin model
• hedge fund
• hedging
• Herfindahl index
• heteroscedasticity
• heterotheticity
• Hicks-neutral technical progress
• high-powered money
• high-tech
• hire purchase
• hiring
• histogram
• historical cost
• hit-and-run entry
• hoarding, labour
• hog cycle
• holding company
• holding, nominee
• holiday, tax
• home bias
• homogeneous function
• homogeneous good
• homoscedasticity
• homotheticity