IDEAS home Printed from
   My bibliography  Save this paper

The technological theory of production and a method of decomposition of the rate of GDP in terms of labour and capital services


  • Vladimir Pokrovski


It is assumed that performance of production system can be described with the three variables: amount of production equipment -- capital stock $K$ and 'consumption' of labour L and capital services S. It is shown that the production function can be specified as the known Cobb- Douglas production function, in which capital services S stands instead of capital stock K, while the state of the production system itself is specified by the technological index 'alpha'. Capital stock plays the role of the means through which the labour resource is substituted by capital services. A method for estimating of capital services and the technological index due to known time series of the output Y, capital stock K and labour L is developed which allows one to separate contributions from production factors and structural change. Empirical evidence for the US economy is used to estimate the validity of the proposed theory.

Suggested Citation

  • Vladimir Pokrovski, 2003. "The technological theory of production and a method of decomposition of the rate of GDP in terms of labour and capital services," Microeconomics 0312001, EconWPA, revised 18 Feb 2004.
  • Handle: RePEc:wpa:wuwpmi:0312001
    Note: Type of Document - Acrobat PDF; prepared on Win98; to print on Star Win Type; pages: 16; figures: 7 (included in file). Acrobat PDF Document

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," Review of Economic Studies, Oxford University Press, vol. 34(3), pages 249-283.
    2. Robert M. Solow, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Capital productivity; Economic Growth; Investment; Labour productivity; Production function; Solow residual; Technology;

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:0312001. 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: (EconWPA). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.