In many industries, competition is far from perfect and managerial efficiency (or a fixed cost) varies among firms. However, traditional measurement of technological progress assumes perfect competition and no fixed cost. This paper incorporates these two factors in the technological-progress measurement and investigates the biases caused by their omission. We show that if capital growth exceeds non-capital-input growth and that firms earn a positive pure profit, then traditional measurement underestimates the true technological progress. We apply this methodology to Japanese and US industries, and find that imperfect competition and managerial efficiency are important. However, the magnitude of the bias is not large ...
Dans de nombreuses industries, la concurrence est loin d'être parfaite, et l'efficience du management (ou de charge fixe) varie selon les entreprises. Cependant, les mesures traditionnelles du progrès technologique impliquent une concurrence parfaite et pas de charge fixe. Ce document incorpore ces deux facteurs dans les mesures du progrès technologique et recherche les distortions causées par leurs omissions. On démontre que, si la croissance du capital est supérieure à celle des autres facteurs, et si les entreprises obtiennent un pur profit, les mesures traditionnelles sous-estiment alors les vrais progrès technologiques. On applique cette méthodologie aux industries japonaises et américaines, et on définit l'importance des imperfections à la concurrence et l'efficience du management. Cependant, l'ampleur des distortions n'est pas énorme ...
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Find related papers by JEL classification: D20 - Microeconomics - - Production and Organizations - - - General D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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