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Estimation and Analysis with a WDI Production Function

Author

Listed:
  • Eriksson, Göran

    (Research Institute of Industrial Economics (IFN))

  • Jakobsson, Ulf

    (Research Institute of Industrial Economics (IFN))

  • Jansson, Leif

    (Research Institute of Industrial Economics (IFN))

Abstract

By means of a new type of production function - the WDI function – an examination has been made of the production structure in thirteen branches of Swedish manufacturing industry. The function used which is the same in all thirteen branches, allows for variable elasticity of substitution and gives us a possibility of distinguishing different types of bias 1n technological development. It was found for instance that the hypothesis on Hicks neutrality can be dismissed for most branches. The data material used contains both production data (i.e. observations regarding capital, labour and production) and observations of the factor income shares. A "Full Information Maximum Likelihood (FIML)" method was used for estimation.

Suggested Citation

  • Eriksson, Göran & Jakobsson, Ulf & Jansson, Leif, 1976. "Estimation and Analysis with a WDI Production Function," Working Paper Series 8, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0008
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    References listed on IDEAS

    as
    1. C. E. Ferguson, 1965. "Time-Series Production Functions and Technological Progress in American Manufacturing Industry," Journal of Political Economy, University of Chicago Press, vol. 73(2), pages 135-135.
    2. C. A. Knox Lovell, 1968. "Capacity Utilization and Production Function Estimation in Postwar American Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 219-239.
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    More about this item

    Keywords

    Manufacturing; Production structure;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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