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Robust Measurement of National Technological Progress

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  • Stefano Zambelli
  • Thomas Fredholm
  • Ragupathy Venkatachalam

Abstract

We propose a measure of technological progress based on the information embedded in standard input-output tables. A connection is established between the quantities necessary as inputs, the associated output and auxiliary prices. It is argued that the wage-profit frontiers and the associated production prices together provide a robust basis for measuring technological progress and productivities. The computation of the wage-profit frontiers is a non-trivial exercise because of high combinatorial complexity. An algorithm that renders this computation feasible is presented. We analyze technological progress and productivities among 30 countries between 1995-2009 using the latest multi-regional input-output data.

Suggested Citation

  • Stefano Zambelli & Thomas Fredholm & Ragupathy Venkatachalam, 2014. "Robust Measurement of National Technological Progress," ASSRU Discussion Papers 1404, ASSRU - Algorithmic Social Science Research Unit.
    • Handle: RePEc:trn:utwpas:1404
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    Cited by:

    1. Kersting, Götz & Schefold, Bertram, 2021. "Best techniques leave little room for substitution. A new critique of the production function," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 509-533.
    2. Stefano Zambelli, 2014. "Aggregate Production Functions and Neoclassical Properties: An Empirical Verification," ASSRU Discussion Papers 1405, ASSRU - Algorithmic Social Science Research Unit.
    3. Schefold, Bertram, 2022. "What Remains of the Cambridge Critique? Potential Conclusions and Directions for Further Research Following from Recent Investigations in Capital Theory," Centro Sraffa Working Papers CSWP53, Centro di Ricerche e Documentazione "Piero Sraffa".
    4. Elisabetta Croci Angelini & Francesco Farina & Enzo Valentini, 2020. "Wage and employment by skill levels in technological evolution of South and East Europe," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1497-1514, November.
    5. Tsoulfidis, Lefteris, 2021. "Capital Theory Debates: New Developments and Direction," Centro Sraffa Working Papers CSWP51, Centro di Ricerche e Documentazione "Piero Sraffa".
    6. Jonathan F. Cogliano & Roberto Veneziani & Naoki Yoshihara, 2022. "Computational methods and classical‐Marxian economics," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 310-349, April.
    7. Petri, Fabio, 2021. "What Remains of the Cambridge Critique? On Professor Schefold's Theses," Centro Sraffa Working Papers CSWP50, Centro di Ricerche e Documentazione "Piero Sraffa".
    8. Theodore Mariolis & Despoina Kesperi, 2022. "Demand multipliers and technical performance of a Southern Eurozone economy in hard times: Kalman–Leontief–Sraffa evidence from the Greek economy, 2010–2014," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 47-75, April.
    9. Marta Fana & Davide Villani, 2021. "The Automotive Supply Chain in Europe: An Input-Output Analysis of Value Added and Employment Composition," JRC Working Papers on Labour, Education and Technology 2021-01, Joint Research Centre.
    10. Stefano Zambelli, 2018. "Production of commodities by means of commodities and non‐uniform rates of profits," Metroeconomica, Wiley Blackwell, vol. 69(4), pages 791-819, November.
    11. S. V. Kuznetsov & A. E. Miller & L. M. Davidenko, 2019. "Development Prospects of Technological Integration: Regional Perspective," Studies on Russian Economic Development, Springer, vol. 30(1), pages 15-21, January.
    12. Boglioni, Michele, 2019. "European economic integration: Comparative advantages and free trade of the means of production," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 491-504.
    13. Vienneau, Robert L., 2019. "Structural economic dynamics, markups, real Wicksell effects, and the reverse substitution of labor," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 216-226.

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    More about this item

    Keywords

    Technological Change; Input–Output analysis; Wage Profit Frontier; Production Prices; Computational Techniques;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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