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Technical Progress and Economies of Scale: Concept of Holotheticity

In: Symmetry and Economic Invariance

Author

Listed:
  • Ryuzo Sato

    (New York University)

  • Rama V. Ramachandran

    (Pebble Brook Lane)

Abstract

Economists are interested in returns to scale for three reasons. First, the equilibrium of an industry is dependent on the nature of its technology. Next, growth theorists, while attributing most of the growth in per capita output to factors other than the increase in capital intensity, are not able to agree whether productivity increases should be modelled as arising from technological change or scale effects. Finally, econometricians recognize the problems in identifying the two sources of productivity in any empirical study.

Suggested Citation

  • Ryuzo Sato & Rama V. Ramachandran, 2014. "Technical Progress and Economies of Scale: Concept of Holotheticity," Advances in Japanese Business and Economics, in: Symmetry and Economic Invariance, edition 2, chapter 0, pages 13-28, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-54430-2_2
    DOI: 10.1007/978-4-431-54430-2_2
    as

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