Dynamic Analysis of Structural Change and Productivity Measurement
A dynamic analysis of structural change is reviewed based on a vintage model of substitutability between inputs including capital before investment, but no substitution possibilities after investment, and ex post production possibilities characterised by fixed input coefficients. Key elements in understanding structural change are the entering of capacity embodying new technology and exiting of capacity no longer able to yield positive quasi-rent. Three production function concepts are identified: the ex ante micro unit production function as relevant when investing in new capacity, the ex post micro production function, and the short-run industry production function giving the production possibilities at the industry level. Productivity measurement, taking these types of production functions into consideration, leads to different interpretations of productivity change than traditional approaches not being clear about which production function concept is used.
|Date of creation:||01 Oct 2008|
|Date of revision:|
|Publication status:||Published as Førsund, Finn R., 'Dynamic Efficiency Measurement' in Indian Economic Review, 2010, pages 125-159.|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
References listed on IDEAS
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.:
- Torstein Bye & Erling Erling Holmoy, 2010.
"Removing Policy-based Comparative Advantage for Energy Intensive Production: Necessary Adjustments of the Real Exchange Rate and Industry Structure,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 177-198.
- Torstein Bye & Erling Holmøy & Kim Massey Heide, 2006. "Removing policy based comparative advantage for energy intensive production. Necessary adjustments of the real exchange rate and industry structure," Discussion Papers 462, Statistics Norway, Research Department.
- Berg, Sigbjorn Atle & Forsund, Finn R & Jansen, Eilev S, 1992. " Malmquist Indices of Productivity Growth during the Deregulation of Norwegian Banking, 1980-89," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages S211-28, Supplemen.
- Dale W. Jorgenson, 1966. "The Embodiment Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 74, pages 1.
- Førsund, Finn R. & Hjalmarsson, Lennart, 1978.
"Generalized Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants,"
Working Paper Series
17, Research Institute of Industrial Economics.
- Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, vol. 89(354), pages 294-315, June.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Kevin J. Fox & W. Erwin Diewert, 2004.
"On the Estimation of Returns to Scale, Technical Progress and Monopolistic Markups,"
Econometric Society 2004 Australasian Meetings
310, Econometric Society.
- Diewert, W. Erwin & Fox, Kevin J., 2008. "On the estimation of returns to scale, technical progress and monopolistic markups," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 174-193, July.
- Forsund, Finn R & Jansen, Eilev S, 1983. " Technical Progress and Structural Change in the Norwegian Primary Aluminum Industry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(2), pages 113-26.
- Jorgenson, Dale W., 1966. "The Embodiment Hypothesis," Scholarly Articles 3403063, Harvard University Department of Economics.
- Eide, E, 1976. "Do New Factories Embody Potential Best Practice Technology?," Empirical Economics, Springer, vol. 1(2), pages 119-27.
When requesting a correction, please mention this item's handle: RePEc:hhs:osloec:2008_027. 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: (Magnus Gabriel Aase)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.