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


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.


Cost Function Opposite Direction Economic Theory Function Approach Technical Change 
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Copyright information

© Physica-Verlag 1984

Authors and Affiliations

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

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