Modelling Technical Progress And Total Factor Productivity: A Plant Level Example

Sang Nguyen and Edward Kokkelenberg

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: Shifts in the production frontier occur because of changes in technology. A model of how a firm learns to use the new technology, or how it adapts from the first production frontier to the second, is suggested. Two different adaptation paths are embodied in a translog cost function and its attendant cost share equations. The paths are the traditional linear time trend and a learning curve. The model is estimated using establishment level data from a non-regulated industry that underwent a technological shift in the time period covered by the data. The learning curve resulted in more plausible estimates of technical progress and total factor productivity growth patterns. A significant finding is that, at the establishment level, all inputs appear to be substitutes.

Keywords: CES; economic; research; micro; data; microdata; chief; economist (search for similar items in EconPapers)
Date: 1988-10
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Modeling technical progress and total factor productivity: A plant level example (1989)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:88-4

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