Productivity Development in Selected Central European Countries Measured by the Sato Production Function

Roubalová Lenka () and Viskotová Lenka ()
Additional contact information
Roubalová Lenka: Mendel University in Brno, Faculty of Business and Economics, Department of Statistics and Operation Analysis, Zemědělská,Brno, Czech Republic
Viskotová Lenka: Mendel University in Brno, Faculty of Business and Economics, Department of Statistics and Operation Analysis, Zemědělská,Brno, Czech Republic

Review of Economic Perspectives, 2018, vol. 18, issue 4, 353-370

Abstract: In this paper, we investigate the relationship between economic output, labour and capital in the Visegrád Four, Austria and Germany. The main objective is to determine the type of technological progress in these countries over time, specifically in the period 1995-2015. The Sato production functions (a special case of the linearly homogeneous production function) for all the aforementioned countries are estimated using linear and nonlinear techniques. In addition to the original Sato production function, we propose modifying it in using a time variable, which allows us to analyse the development of productivity over time. Based on the NLS estimates of this modification, we create isoquant maps and calculate the value of the marginal rate of technical substitution of labour for capital to identify the nature of technological progress typical for each country. We also compare the properties of both the OLS and NLS estimates. The results are quite specific to individual countries, but there is some room for generalization.

Keywords: production function; Sato production function; isoquants; nonlinear least squares method; technological progress (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/revecp-2018-0018 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:18:y:2018:i:4:p:353-370:n:2

DOI: 10.2478/revecp-2018-0018

Access Statistics for this article

Review of Economic Perspectives is currently edited by Antonín Slaný

More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla ().