Sources of Growth, Input Structure and Technical Progress in American High-Technology: A Business Cycle Analysis

Document Type

Paper

Publication Date

12-1-1994

Abstract

The high-technology sector for the period of 1967-1982 has three special features determined in terms of (a) the sources of its output growth, (b) the substitution possibilities among its resources inputs and (c) the nature of bias of its technical change. A conventional growth equation is exploited to study the output growth as well as its decomposed sources. A dual translog cost function modelling high-technology production is estimated to evaluate substitution possibilities and technical change bias. Finally, the substitution elasticities and coefficients of technical change are derived by manipulating the estimates of the translog cost function.

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