Summary
The objective of this paper is to employ econometric models of production to test restrictions for characterizing the structure of technology and changes in technology empirically. For this purpose we implement two alternative econometric models, based on translog representations of a production function in two outputs and two inputs and of a price function in the corresponding prices. Our test results are consistent with a nonjoint technology. Tests of restrictions implied by types of commodity augmenting technical change reveal that Solow neutrality is a valid specification which we cannot reject with aggregate time series data from the Federal Republic of Germany for the period 1950–1973.
Zusammenfassung
Das Ziel dieses Beitrages ist die Verwendung eines ökonometrischen Produktionsmodells, um Parameterrestriktionen zur Charakterisierung der Struktur der Technologie und ihrer zeitlichen Änderung zu testen. Zu diesem Zweck werden zwei alternative ökonometrische Modelle gewÄhlt, die auf der Translog Darstellung einer Produktionsfunktion in zwei Produkten und zwei Faktoren und einer Preisfunktion in den entsprechenden Preisen basieren. Unsere Testergebnisse sind vereinbar mit der Hypothese einer unverbundenen Produktion von Konsum- und Investitionsgütern. Tests von Parameterrestriktionen als Folge verschiedener Arten von güter- und faktorvermehrendem technischen Fortschritt zeigen, da\ Solow-NeutralitÄt eine zulÄssige Spezifikation ist, die mit aggregierten Zeitreihen für die Bundesrepublik Deutschland nicht verworfen werden kann.
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The authors would like to acknowledge with gratitude their indebtedness to the referees for their valuable comments.
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Conrad, K., Jorgenson, D.W. The structure of technology: Nonjointness and commodity augmentation, Federal Republic of Germany, 1950–1973. Empirical Economics 3, 91–113 (1978). https://doi.org/10.1007/BF01764662
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DOI: https://doi.org/10.1007/BF01764662