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On the Measurement of Aggregate Production Functions

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  • Hsing, Mo-huan

Abstract

The present paper is addressed to a basic issue concerning the measurement of aggregate production functions using the method of measurement employed in Robert Solow's 1957 paper as an illustration. The author finds that if technical change is appropriately accounted for so as to be consistent with the neutrali ty and homogeneity hypotheses, what would obtain, both analytically and empirically, is not a curved production function bu t an output identity with base-period weights. This suggests that the empirical relevance of the orthodox production theory is suspect. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Hsing, Mo-huan, 1992. "On the Measurement of Aggregate Production Functions," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 16(4), pages 463-474, December.
    • Handle: RePEc:oup:cambje:v:16:y:1992:i:4:p:463-74
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    Cited by:

    1. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.

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