Measuring the efficiency of decision making units

This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.

The mechanics of economic development

http://individual.utoronto.ca/zheli/sa1.pdf

On the mechanics of economic development

Using the result that under the null hypothesis of no misspecification an asymptotically efficient estimator must have zero asymptotic covariance with its difference from a consistent but asymptotically inefficient estimator, specification tests are devised for a number of model specifications in econometrics. Local power is calculated for small departures from the null hypothesis. An instrumental variable test as well as tests for a time series cross section model and the simultaneous equation model are presented. An empirical model provides evidence that unobserved individual factors are present which are not orthogonal to the included right-hand-side variable in a common econometric specification of an individual wage equation.

/pdf/specification-tests-in-econometrics-9sg4xr62ii.pdf

Specification Tests in Econometrics

Large sample properties of generalized method of moments estimators

Focuses on additive and homogeneous production possibility frontiers that have played an important role in formulating statistical tests of the theory of production. Characterization of the class of production possibility frontiers that are homogenous and additive; Representation of the production possibility frontier; Statistical tests of the theory of production. (Из Ebsco)

https://www.jstor.org/stable/pdfplus/1927992.pdf

Transcendental logarithmic production frontiers

The Explanation of Productivity Change

Tax policy and investment behaviour: tax policy and the cost of capital services, estimates of the parameters of the investment function, the effects of tax policy on investment behaviour, Robert E. Hall and Dale W. Jorgenson application of the theory of optimum capital accumulation: theory of investment behaviour, econometrics of investment behaviour, estimates of the parameters of the investment functions, impact of tax policy on investment behaviour, Robert E. Hall and Dale W. Jorgenson technology and decision rules in the theory of investment behaviour: introduction, technology, objective function, optimal investment policy, decision rules, Dale W. Jorgenson the economic impact of investment incentives: introduction, postwar investment incentives in the United States, the economic analysis of investment incentives, current policy alternatives, direct impact, total impact, Dale W. Jorgenson the economic theory of replacement and depreciation: introduction, replacement, depreciation, form of the replacement distribution, Dale W. Jorgenson investment and production - a review: introduction, form of the production function - cross sections, form of the production function - time series, returns to scale, Dale W. Jorgenson the investment tax credit and counter-cyclical policy: summary, introduction, impact of the investment tax credit, alternative investment tax credits, appendices - the investment equation, optimization procedures, Roger H. Gordon and Dale W. Jorgenson inflation-proof depreciation of assets: the first-year system, administrative aspects, ... against two others, future economic impact, a better way, Alan J. Auerbach and Dale W. Jorgenson inflation and corporate capital recovery: introduction, theoretical frame-work, empirical implementation, capital recovery during the postwar period, proposed systems for capital recovery, Dale W. Jorgenson and Martin A. Sullivan the efficiency of capital allocation: introduction, technology and preferences, general equilibrium model, appendix - list of instrumental variables, Dale W. Jorgenson and Kun-Young Yun tax policy and capital allocation: introduction, tax policy, technology and preferences, general equilibrium model, tax reform, appendix - list of instrumental variables, Dale W. Jorgenson and Kun-Young Yun. (Part contents).

Capital Theory and Investment Behavior

Tax Policy and Investment Behavior

THE CONTINUED STRENGTH and vitality of the U.S. economy continue to astonish economic forecasters.(1) A consensus is now emerging that something fundamental has changed, with "new economy" proponents pointing to information technology (IT) as the causal factor behind the strong performance. In this view, technology is profoundly altering the nature of business, leading to permanently higher productivity growth throughout the economy. Skeptics remain, however, arguing that the recent success reflects a series of favorable, but temporary, shocks. This argument is buttressed by the view that the U.S. economy behaves rather differently than envisioned by the "new economy" advocates.(2) Productivity growth, capital accumulation, and the impact of technology were topics once reserved for academic debates, but the recent success of the U.S. economy has moved them into popular discussion. This paper employs well-tested and familiar methods to analyze important new information made available by the recent benchmark revision of the U.S. national income and product accounts (NIPAs). We document the case for raising the speed limit: for an upward revision of intermediate-term projections of future growth to reflect the latest data and trends. The late 1990s were exceptional in comparison with the growth experience of the U.S. economy over the past quarter century as a whole. Although growth rates have not yet returned to those of the golden age of the U.S. economy in the 1960s, the data nonetheless clearly reveal a remarkable transformation. Rapid declines in the prices of computers and semiconductors are well known and carefully documented, and evidence is accumulating that similar declines are taking place in the prices of software and communications equipment. Unfortunately, the empirical record is seriously incomplete, and therefore much remains to be done before definitive quantitative assessments can be made about the complete role of these high-technology assets. Despite the limitations of the available data, the mechanisms underlying the structural transformation of the U.S. economy are readily apparent. As an illustration, consider the increasing role that computer hardware plays as a source of economic growth.(3) For the period 1959-73, computer inputs contributed less than 0.1 percentage point to annual U.S. economic growth. Since 1973, however, the price of computers has fallen at a historically unprecedented rate, and firms and households, following a basic principle of economics, have substituted toward these relatively cheaper inputs. Since 1995 the price decline for computers has accelerated, reaching nearly 28 percent per year from 1995 to 1998. In response, investment in computers has exploded, and the growth contribution of computer hardware has increased more than fivefold, to 0.46 percentage point per year in the late 1990s.(4) Software and communications equipment, two other types of IT assets, contributed an additional 0.30 percentage point per year for 1995-98. Preliminary estimates through 1999 reveal further increases in these contributions for all three high-technology assets. Next, consider the acceleration of average labor productivity (ALP) growth in the 1990s. After a twenty-year slowdown dating from the early 1970s, ALP grew 2.4 percent per year during 1995-98, more than a percentage point faster than during 1990-95.(5) A detailed decomposition shows that capital deepening, the direct consequence of price-induced substitution and rapid investment, added 0.49 percentage point to ALP growth. Faster total factor productivity (TFP) growth contributed an additional 0.63 percentage point, partly reflecting technical change in the production of computers and the resulting acceleration in their price decline. Meanwhile, slowing growth in labor quality retarded ALP growth by 0.12 percentage point relative to the early 1990s, as employers exhausted the pool of available workers. …

/pdf/raising-the-speed-limit-u-s-economic-growth-in-the-24rblxmaeu.pdf

Dale W. Jorgenson

Papers

Transcendental logarithmic production frontiers

The Explanation of Productivity Change

Capital Theory and Investment Behavior

Tax Policy and Investment Behavior

Raising the Speed Limit: U.S. Economic Growth in the Information Age