IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/273-en.html
   My bibliography  Save this paper

Fixed Cost, Imperfect Competition and Bias in Technology Measurement: Japan and The United States

Author

Listed:
  • Kiyohiko G. Nishimura
  • Masato Shirai

Abstract

In many industries, competition is far from perfect and managerial efficiency (or a fixed cost) varies among firms. However, traditional measurement of technological progress assumes perfect competition and no fixed cost. This paper incorporates these two factors in the technological-progress measurement and investigates the biases caused by their omission. We show that if capital growth exceeds non-capital-input growth and that firms earn a positive pure profit, then traditional measurement underestimates the true technological progress. We apply this methodology to Japanese and US industries, and find that imperfect competition and managerial efficiency are important. However, the magnitude of the bias is not large ... Dans de nombreuses industries, la concurrence est loin d'être parfaite, et l'efficience du management (ou de charge fixe) varie selon les entreprises. Cependant, les mesures traditionnelles du progrès technologique impliquent une concurrence parfaite et pas de charge fixe. Ce document incorpore ces deux facteurs dans les mesures du progrès technologique et recherche les distortions causées par leurs omissions. On démontre que, si la croissance du capital est supérieure à celle des autres facteurs, et si les entreprises obtiennent un pur profit, les mesures traditionnelles sous-estiment alors les vrais progrès technologiques. On applique cette méthodologie aux industries japonaises et américaines, et on définit l'importance des imperfections à la concurrence et l'efficience du management. Cependant, l'ampleur des distortions n'est pas énorme ...

Suggested Citation

  • Kiyohiko G. Nishimura & Masato Shirai, 2000. "Fixed Cost, Imperfect Competition and Bias in Technology Measurement: Japan and The United States," OECD Economics Department Working Papers 273, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:273-en
    DOI: 10.1787/260256735077
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/260256735077
    Download Restriction: no
    File URL: https://libkey.io/10.1787/260256735077?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hugo Erken & Piet Donselaar & Roy Thurik, 2018. "Total factor productivity and the role of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1493-1521, December.
    2. Emi Nakamura & Masao Nakamura (presenter) & Takanobu Nakajima, 2004. "Measuring Firms’ R&D Effects on Technical Progress: Japan in the 199," Econometric Society 2004 Far Eastern Meetings 414, Econometric Society.
    3. Alan J. Auerbach & Maurice Obstfeld, 2005. "The Case for Open-Market Purchases in a Liquidity Trap," American Economic Review, American Economic Association, vol. 95(1), pages 110-137, March.
    4. Kiyohiko G. Nishimura & Kazunori Minetaki & Masato Shirai & Futoshi Kurokawa, 2002. "Effects of Information Technology and Aging Work Force on Labor Demand and Technological Progress in Japanese Industries: 1980-1998," CIRJE F-Series CIRJE-F-145, CIRJE, Faculty of Economics, University of Tokyo.

    More about this item

    Keywords

    charge fixe; compétition imparfaite; efficience du management; fixed cost; imperfect competition; industries japonaises et américaines; Japanese and US Industries; managerial efficiency; progrès technologique; technological progress;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:273-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.