Identifying the sector bias of technical change

Arbeitspapier

The empirical literature studying the sector bias of technical change has only focused on skill-biased technical change. In this paper, I analyse the sector bias of both factor-neutral and factor-biased technical change. In Norwegian data from 1972 to 2007 the empirical evidence is not clear on the impact of a sector bias of skill-biased technical change, but it points to a sector bias of factor-neutral technical change from the 1970s to the 1990s. That said, the impact of the sector bias seems to have reduced towards the latter part of the sample period. I also evaluate the cross-section model used in the literature and show the strong restrictions that must be placed on a vector equilibrium correction model to end up with the standard model. If these restrictions do not hold, the results reported in the literature may be biased. I show that the restrictions are strongly rejected, and that erroneously imposing them significantly changes the estimates of skill-biased technical change in many sectors. These results can, to some extent, be traced back to how the cross-section model ignores initial disequilibrium and imposes factors of production to be either complements or substitutes

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Papers ; No. 795

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Econometric modeling ; Technical change ; Sector bias

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): von Brasch, Thomas
• Ereignis: Veröffentlichung
• (wer): Statistics Norway, Research Department
• (wo): Oslo
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/192777
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ