Technical progress and energy dependent production functions

1985 ◽  
Vol 45 (3) ◽  
pp. 285-311 ◽  
Author(s):  
Reiner Kümmel ◽  
Wolfgang Strassl ◽  
Alfred Gossner ◽  
Wolfgang Eichhorn
Keyword(s):  
Technical Progress ◽  
Production Functions ◽  
Energy Dependent

scholarly journals Energy in Growth Accounting and the Aggregation of Capital and Output

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Reiner Kümmel ◽  
Dietmar Lindenberger
Keyword(s):  
Time Series ◽  
Work Performance ◽  
Value Added ◽  
Second Law Of Thermodynamics ◽  
Production Functions ◽  
Growth Accounting ◽  
Second Law ◽  
Industrial Countries ◽  
The Cost ◽  
Energy Dependent

Abstract We review the physical aggregation of value added and capital in terms of work performance and information processing and its relation to the deflated monetary time series of output and capital. In growth accounting it complements the time series of labor and energy, measured in hours worked per year and kilowatt-hours consumed per year, respectively. This aggregation is the conceptual basis on which those energy-dependent production functions have been constructed that reproduce economic growth of major industrial countries in the 20th century with small residuals and output elasticities that are for energy much larger and for labor much smaller than the cost shares of these factors. Accounting for growth in such a way, which deviates from that of mainstream economics, may serve as a first step towards integrating the First and the Second Law of Thermodynamics into economics.

scholarly journals The Two-level CES Production Function for the Manufacturing Sector of Pakistan

1989 ◽  
Vol 28 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Ashfaque H. Khan
Keyword(s):  
Production Function ◽  
Technical Progress ◽  
Manufacturing Sector ◽  
Relevant Literature ◽  
Returns To Scale ◽  
Appropriate Technology ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Two Factors ◽  
Factors Of Production

Production functions have been widely studied in the relevant literature. In this paper, apart from labour and capital, we have used energy as a factor input and calculated the elasticity of substitution between these inputs, measured technical progress, and determined the returns to scale in the manufacturing sector of Pakistan. Since we have more than two factors of production, the standard Cobb· Douglas and CES production functions do not provide satisfactory results. Hence, two·level (nested) CES production function becomes the natural choice for the appropriate technology. Using this technology, we have found low elasticity of substitution between the three factors of production. Furthermore, the manufacturing sector is found to exhibit decreasing returns to scale, having experienced disembodied technical progress at the rate of 3.7 percent per annum.

scholarly journals Sectoral Technology and Structural Transformation

2015 ◽  
Vol 7 (4) ◽  
pp. 104-133 ◽  
Author(s):  
Berthold Herrendorf ◽  
Christopher Herrington ◽  
Ákos Valentinyi
Keyword(s):  
Structural Transformation ◽  
Technical Progress ◽  
Second Order ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Production Factors

We assess how the properties of technology affect structural transformation, i.e., the reallocation of production factors across the broad sectors of agriculture, manufacturing, and services. To this end, we estimate sectoral constant elasticity of substitution (CES) and Cobb-Douglas production functions on postwar US data. We find that differences in technical progress across the three sectors are the dominant force behind structural transformation whereas other differences across sectoral technology are of second-order importance. Our findings imply that Cobb-Douglas sectoral production functions that differ only in technical progress capture the main technological forces behind the postwar US structural transformation. (JEL E16, E25, O33, O47)

scholarly journals Le progrès, le transfert et le choix technologiques dans les pays en voie de développement (PVD) : vers une approche plus réaliste du problème de la substitution

2009 ◽  
Vol 58 (3) ◽  
pp. 303-322 ◽  
Author(s):  
Eckhard Siggel
Keyword(s):  
Production Function ◽  
Technical Progress ◽  
Technological Progress ◽  
Manufacturing Sector ◽  
Production Functions ◽  
Factor Price ◽  
Technology Choice ◽  
Technology Transfers ◽  
Engineering Information ◽  
Using Data

Abstract In this paper it is argued that the conventional estimation of production functions may be misleading for the study of technological progress and technology choice in developing countries. The analysis of technical progress and technology transfers requires empirical production functions which should reflect accurately the state of technology and productivity in a given country or region. The neoclassical production function embracing as an envelope all observations in an industry is likely to overstate the number of techniques already established in the region. It may therefore underestimate the technical progress achieved by further transfers. The problem lies in the very concept of technological progress which is defined as a shift of the universal production function and excludes movements along the production isoquant. As to the choice of technology the estimation of the elasticity of substitution may be equally misleading for the purpose of predicting changes of factor use caused by factor price changes. The substitution possibilites between factors of production in the actually existing choice set of techniques for a given country or region are better described by the concept of a technology shelf. Two important characteristics of the technology shelf are the range and density of substitution. It is argued that industrial engineering information should be used to better describe the technology shelf. In its empirical part, using data of the manufacturing sector of Zaire, the paper shows how such engineering information may be used to estimate the range and density of substitution.

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