Productivity with General Indices of Management and Technical Change
We propose a model of production where technical change is both time and management induced. We define a general management index in addition to the general time index of Baltagi and Griffin (1988) and use them as arguments in the translog production function. Time and management induced technical change are then defined in terms of these general indices. For comparison, we also consider models in which time and management are specified as continuous variables. We report empirical results for a sample of manufacturing firms in the US, UK, Germany and France.
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