Hicks Neutral Technical Change Revisited: CES Production Function and Information of General Order
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Arnaud Dupuy
In this paper, I show that Hicks neutral technical change is identified as the information of order sigma obtained if the distribution of factor prices is replaced by the distribution of factor efficiency parameters. Together with Solow's residual, the information method enables us to distinguish between the neutral and non neutral part of technical and organizational changes. An empirical evaluation of both methods is provided using Jorgenson's (2001) US data for the period 1948-1999. The main results of the paper are that i) both neutral and non neutral technical change have occurred in the US in the period 1948-1999 and ii) 3/4th of the productivity slowdown observed in the 70s and 80s is due to a deceleration in the contribution of non neutral technical changes.
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- Hicks Neutral Technical Change Revisited: CES Production Function and Information of General Order
- R&D Subsidies and the Surplus Appropriability Problem
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- On the Political Economy of Housing's Tax Status
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- How Does the New Keynesian Monetary Model Fit in the U.S. and the Eurozone? An Indirect Inference Approach
- Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones
- Equilibrium Wage Dispersion: An Example
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Articles in the same Issue
- Topics Article
- Counter-Cyclical and Counter-Inflation Monetary Policy Rules and Comovement Properties of Money Growth
- Hicks Neutral Technical Change Revisited: CES Production Function and Information of General Order
- R&D Subsidies and the Surplus Appropriability Problem
- Literacy and Growth
- The Fed's Preference for Policy Rate Smoothing: Overestimation Due to Misspecification?
- Inflation Targeting in Western Europe
- On the Political Economy of Housing's Tax Status
- Rating Agencies and Sovereign Debt Rollover
- How Does the New Keynesian Monetary Model Fit in the U.S. and the Eurozone? An Indirect Inference Approach
- Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones
- Equilibrium Wage Dispersion: An Example
- Exchange Rate Regimes, Specialization and Trade Volume
- A Refinement in the Specification of Empirical Macroeconomic Models as an Extension to the EBA Procedure
- Education, Growth, and Redistribution in the Presence of Capital Flight
- Measuring the Dissemination of Volatility across Levels of Development
