Dynamic analysis of structural change and productivity measurement

Arbeitspapier

A dynamic analysis of structural change is reviewed based on a vintage model of substitutability between inputs including capital before investment, but no substitution possibilities after investment, and ex post production possibilities characterised by fixed input coefficients. Key elements in understanding structural change are the entering of capacity embodying new technology and exiting of capacity no longer able to yield positive quasi-rent. Three production function concepts are identified: the ex ante micro unit production function as relevant when investing in new capacity, the ex post micro production function, and the short-run industry production function giving the production possibilities at the industry level. Productivity measurement, taking these types of production functions into consideration, leads to different interpretations of productivity change than traditional approaches not being clear about which production function concept is used.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2008,27

Classification and Topics

• Classification: Wirtschaft ; Index Numbers and Aggregation; Leading indicators ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Metals and Metal Products; Cement; Glass; Ceramics
• Subject: Structural change ; productivity measurement ; putty-clay ; ex ante production function ; short-run industry production function ; Strukturwandel ; Produktivität ; Produktionsfunktion ; Putty-Clay-Modell ; Aluminiumindustrie ; Norwegen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Førsund, Finn R. ; Hjalmarsson, Lennart
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/47348
• Last update: 10.03.2025, 11:43 AM CET