Labour and capital saving technical change in telecommunications
The Australian telecommunications sector is being improved and extended through substantial recent investment in intelligent technology such as digital switching, fibre optics, satellite and cellular transmission, and the Internet. These technologies are being progressively integrated with technology from the broadcasting, computer and electronics industries, providing a unified information infrastructure for information transmission and processing. Technological progress embodied in new equipment has the effect of increasing the efficiency of the factors of production. Such efficiency increases can be biased towards a particular factor. For instance, the impact of labour-augmenting technical change is a decline in the cost of labour per unit of production. When such biases are apparent the relativity between the costs of labour and capital per unit of production is changed. In the longer term, technical change can impact on the rate of employment growth and also on the rate of capital accumulation. In this study the Australian telecommunications cost structure is examined for the period 1919 to 1988. To measure labour saving and capital saving technical change a translog cost model is estimated. Multiproduct telecommunications cost studies typically employ the translog cost model (Evans and Heckman, 1984; Rooller, 1990a; 1990b; Shin and Ying, 1992; McKenzie and Small, 1997). The translog model places no a priori restrictions on substitution possibilities among the factors of production, and allows scale economies to vary with the level of output.
Volume (Year): 34 (2002)
Issue (Month): 14 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard T. Shin & John S. Ying, 1992. "Unnatural Monopolies in Local Telephone," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 171-183, Summer.
- McKenzie, David J & Small, John P, 1997. "Econometric Cost Structure Estimates for Cellular Telephony in the United States," Journal of Regulatory Economics, Springer, vol. 12(2), pages 147-57, September.
- Roller, Lars-Hendrik, 1990. "Proper Quadratic Cost Functions with an Application to the Bell System," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 202-10, May.
- W. Erwin Diewert & T.J. Wales, 1989.
"Flexible Functional Forms and Global Curvature Conditions,"
NBER Technical Working Papers
0040, National Bureau of Economic Research, Inc.
- Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
- Charles R. Hulten, 1992. "Growth Accounting When Technical Change is Embodied in Capital," NBER Working Papers 3971, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1821-1828. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.