This paper utilizes the concept of almost
homogeneity to obtain a generalization of the elasticity of
factor substitution. From this, an expression for the bias
to technical change is derived that explicitly includes the
individual degrees of input homogeneity. It is shown that
the relative values of these homogeneity parameters can
affect the magnitude and direction of the factor-saving bias
to technical change. These parameters also influence the
size of the residual or unexplained component of aggregate
output growth.
