Some comments on Antonelli and Quatraro’s paper of measuring effect of biased technology on TFP

Abstract

The paper is a response to Antonelli and Quatraro’s paper named “The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD”. We point out that “so-called novel method” which is used to identify and disentangle the effects of the direction of technological change on total factor productivity (TFP) in the article is wrongly implemented. Antonelli and Quatraro introduce Solow’s methodology as part of his basic model to represent the effect of neutral technical change, ignoring the intrinsic consequence of Solow’s calculating which called technical progress productivity is far from neutral. Hence, his methodology has little significance, neither the empirical analysis. Lastly, we give a new method measuring whether the technology is appropriate to the factor endowments’ changing. That’s the effect of biased technology on TFP.