Advertisement

Empirical Economics

, Volume 9, Issue 2, pp 67–74 | Cite as

Technological progress and factor substitution in the U.S. Textile industry, 1949–1974

  • K. L. Gupta
  • M. A. Taker
Article

Abstract

Using the translog dual cost function approach, we estimate the elasticity of substitution and the nature of technical change in the U.S. textile industry. A significant extension on the existing studies on this topic is the incorporation of learning by doing as a source of technical change. Our results confirm earlier findings of limited substitution possibilities between capital and labour and that factor argumenting technical change is labour saving and capital using in the Hicksian sense. But this augmentation takes placeboth due to time and learning and further that bias due to the two factors is in the opposite direction.

Keywords

Cost Function Opposite Direction Economic Theory Function Approach Technical Change 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Arrow, K.: The Economics of Learning by Doing. Review of Economic Studies, 1962, 154–174.Google Scholar
  2. Batavia, B.: The Estimation of Biased Technical Efficiency in the U.S. Textile Industry, 1949–1974. Southern Economic Journal, 1979, 1091–1103.Google Scholar
  3. Berndt, E.R., andD.O. Wood: Technological Change, Tax Policy, and the Derived Demand for Energy. MIT-EL-75-019, cited by Wills.Google Scholar
  4. -: Technology, Prices and the Derived Demand for Energy. Review of Economics and Statistics, 1975, 259–268.Google Scholar
  5. Berndt, E.R., R.E. Hall, andJ.A. Hausman: Estimation and Inference in Non-Linear Structural Models. Annals of Economics and Social Measurement, 1974, 667–678.Google Scholar
  6. Christensen, L.R., D.W. Jorgenson, andL. Lau: Transcendental Logarithmic Production Frontiers. Review of Economics and Statistics, 1971, 28–45.Google Scholar
  7. Malinvaud, E.: Statistical Methods of Econometrics. Amsterdam, North-Holland, 1970.Google Scholar
  8. Nerlove, M.: Recent Empirical Studies of the CES and Related Production Functions. The Theory and Empirical Analysis of Production. Ed. by M. Brown, New York, NBER, 1967, 55–122.Google Scholar
  9. Sato, R.: The Estimation of Biased Technical Progress and the Production Function. International Economic Rebiew, 1970, 179–207.Google Scholar
  10. Sheshinski, E.: Tests of Learning by Doing Hypothesis. Review of Economics and Statistics, 1967, 568–578.Google Scholar
  11. Wills, J.: Technical Change in the U.S. Primary Metal Industry. Journal of Econometrics, 1979, 85–98.Google Scholar

Copyright information

© Physica-Verlag 1984

Authors and Affiliations

  • K. L. Gupta
    • 1
  • M. A. Taker
    • 1
  1. 1.Dept. of EconomicsUniversity of AlbertaEdmontonCanada

Personalised recommendations