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Estimating technical change by nonparametric methods

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  • Jati Sengupta

Abstract

A nonparametric method using dynamic data envelopment analysis is developed here to specify and estimate a dynamic production frontier. By this technique technological progress measured by the time shift of the production frontier and the scale economies measured by increasing returns to scale are estimated from the observed input output data, which may sometimes be nonstationary. An application to US computer industry exhibits substantial technological progress and scale economies over the period 1987-1998.

Suggested Citation

  • Jati Sengupta, 2004. "Estimating technical change by nonparametric methods," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 413-420.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:413-420
    DOI: 10.1080/00036840410001682124
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    1. Erwin Diewert, 2000. "The Challenge of Total Factor Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 45-52, Fall.
    2. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
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    Cited by:

    1. Sahoo, Biresh K. & Tone, Kaoru, 2013. "Non-parametric measurement of economies of scale and scope in non-competitive environment with price uncertainty," Omega, Elsevier, vol. 41(1), pages 97-111.

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