The empirical assessment of technology differences: comparing the comparable

Christoph Schmidt and Manuel Frondel

No 02-63, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper compares technologies across space and time on the basis of factual and counterfactual substitution elasticities and argues that differences in estimated substitution elasticities should be decomposed into two counterfactual components. While the first component is designed to indicate how the ease of substitution is altered by varied economic circumstances, the second addresses the question of how technologies would compare under genuinely comparable situations. This argument is illustrated by the example of energy-price elasticities of capital before and after the oil crisis of the early 1970s.

Keywords: Counterfactuals; Substitutability; Translog Cost Function (search for similar items in EconPapers)
JEL-codes: C3 D2 (search for similar items in EconPapers)
Date: 2002
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https://www.econstor.eu/bitstream/10419/24542/1/dp0263.pdf (application/pdf)

Related works:
Journal Article: The Empirical Assessment of Technology Differences: Comparing the Comparable (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:548

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