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Estimation of resource-specific technological change

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  • Wei, Taoyuan
  • Liu, Yang

Abstract

Technological change plays a critical role in economic growth. Prevailing approaches to estimation of total technological change are associated with total factor productivity (TFP) based on a Cobb-Douglas (CD) production function. To estimate resource-specific technological change, previous studies typically assume an alternative specific functional form other than a CD function such as a Constant Elasticity of Substitution (CES) function. In this article, we argue that under certain conditions, a resource-specific technological change can be estimated from observed resource intensity/productivity data over time, irrespective of which functional form is adopted. We also illustrate that if the estimated technological change is applied to a CD production function, the estimated resource elasticities can differ considerably from that estimated by the prevailing TFP approach. In our case of a panel data for 40 regions 1995–2009, our approach shows that a CD function is plausible across regions compared to the TFP approach.

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  • Wei, Taoyuan & Liu, Yang, 2019. "Estimation of resource-specific technological change," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 29-33.
    • Handle: RePEc:eee:tefoso:v:138:y:2019:i:c:p:29-33
    DOI: 10.1016/j.techfore.2018.08.006
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    Cited by:

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    2. Dimitris KALLIORAS & Nickolaos TZEREMES & Panayiotis TZEREMES & Maria ADAMAKOU, 2021. "Technological Change, Technological Catch-Up And Market Potential: Evidence From The Eu Regions," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 135-151, June.
    3. Zhang, Shangfeng & Chen, Congcong & Xu, Siwa & Xu, Bing, 2021. "Measurement of capital allocation efficiency in emerging economies: evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    4. Zhao, Pan & Hu, Guoheng & Jin, Peizhen, 2023. "Biased technical change, capital deepening, and efficiency of environmental regulations: Evidence from the Chinese provinces," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Brockway, Paul E. & Sorrell, Steve & Semieniuk, Gregor & Heun, Matthew Kuperus & Court, Victor, 2021. "Energy efficiency and economy-wide rebound effects: A review of the evidence and its implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).

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