Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach
TL;DR: In this article, the authors analyzed technological change and factor bias in the Indian power sector using a translog cost function and identified the major factors contributing to technological progress, including accumulation of knowledge and increasing scale.
Abstract: Technological change and factor bias in the Indian power sector are analyzed using a translog cost function. Various components of technological progress and factor bias are identified and estimated, using a 21 year unbalanced panel data of Indian states and union territories. Heterogeneity across states is incorporated in the model using a variance component model. Appropriate corrections are made for unbalanced panel data. Empirical results show that the annual average rate of technological progress has been 2.4% for the country as a whole. Accumulation of knowledge and increasing scale are found to be the major factors contributing to technological progress. In contrast, the effects of factor price changes and fixed capital accumulation on technological progress have been unfavorable. Pure factor bias measure indicate saving in the use of fuel and labor, and increased use of materials. Tests are performed to check the curvature properties of the underlying technology.
Citations
More filters
Posted Content•
TL;DR: In this article, the biases of technological change, factor substitution and economies of scale in four major manufacturing industries (viz. Cement, electricity and gas, cotton textiles and iron and steel) in India are examined.
Abstract: The biases of technological change, factor substitution and economies of scale in four major manufacturing industries (viz. Cement, electricity and gas, cotton textiles and iron and steel) in India are examined. The translog cost functions are estimated using annual time series data covering the period 1960-61 to 1982-83. The study reveals that technical change has been biased towards the use of labour and materials and against the use of capital and energy in electricity and gas industries. In cotton textiles, the technological change has shown the opposity biases. Significant economies of sclae exist in the production of electricity and gas. Enough evidence of substitution possibilities among factors of production in all the four industries was also found.
3 citations
01 Jan 1999
TL;DR: In this article, a translog variable cost function framework is used to estimate a system of the cost function and the associated cost share equations for Thai agriculture, using the iterative seemingly unrelated regression method applied to a panel of 92 observations, comprising annual data from 1972 to 1994 for four regions in Thailand.
Abstract: Growth in agricultural production in Thailand can no longer rely mainly on an extension of land area. New technology inputs such as fertilisers, mechanisation, water and chemicals have been adopted. This change has raised questions about the technical change and productivity growth in Thai agricultural production. A translog variable cost function framework is used to estimate a system of the cost function and the associated cost share equations for Thai agriculture. The system is estimated using the iterative seemingly unrelated regression method applied to a panel of 92 observations, comprising annual data from 1972 to 1994 for four regions in Thailand. This results indicate that the availabilities of new land on agricultural production could has the influence on productivity growth in Thailand.
2 citations
Cites result from "Decomposition of Technological Chan..."
...Similar to many studies (e.g., Daly and Rao 1985; Bhattacharyya, Bhattacharyya and Mitra 1997), in order to get a positive estimate of technical change in a case of decreasing cost, a negative sign is applied to the above partial derivative....
[...]
01 Jan 2000
TL;DR: In this article, a translog variable cost function framework is used to estimate a system of the cost function and the associated cost share equations for Thai agriculture for the period of 1972-94.
Abstract: The main purposes of this study are to quantitatively investigate the production structure and the pattern of technical change in Thai agriculture for the period of 1972-94. A translog variable cost function framework is used to estimate a system of the cost function and the associated cost share equations for Thai agriculture. The system is estimated using the iterative seemingly unrelated regression method applied to a panel of 92 observations, comprising annual data from 1972 to 1994 for four regions in Thailand. The analytical results indicate that there were scale economies, low technical progress, and complementarities between capital and fertiliser, capital and hired labour, and capital and unpaid family labour. Technical change was biased toward saving hired labour, operator labour and unpaid family labour and also biased toward using fertiliser and capital.
2 citations
TL;DR: In this paper, the authors analyzed a long-run technological progress in the Canadian sawmilling industry and found that technological progress was biased toward capital-using, energy-saving, and Hicks-neutral for labor and material.
Abstract: The goal of this study was to analyze a long-run technological progress in the Canadian sawmilling industry. Technological progress was considered as any kind of shift in the production technology estimated by total factor productivity growth (TFPG) and other parameters that complemented it. Out of six econometric models that were tested for efficacy in describing the technology, an unrestricted translog functional-form of a long-run total cost function described the technology sufficiently. The industry’s TFPG averaged 2.3% per year over the study period. Factor substitution elasticities implied that it was easy for the industry to substitute labor for capital and energy. The industry recorded increasing returns to scale and economies of scale; and technological progress was biased toward capital-using, energy-saving, and Hicks-neutral for labor and material. The multiple benefits that society derives from TFPG include: being one of the engines of economic growth, mitigation of natural capital depletion, minimization of wasteful-use of factors of production, mitigation of the adverse effects of inflation, boosting economic savings, freeing input factors to be reallocated to production of other goods and services, improvements in industrial competitiveness in the marketplace, and revealing possibilities to raise wage rates. Implications of the findings for industrial policymaking are discussed.
1 citations
Cites background from "Decomposition of Technological Chan..."
...Economies of scale: Although they are more applicable at a firm level, the literature shows that economies of scale (ES) are widely reported in industrial empirical studies to gain additional insights in characterizing industrial production technologies [13](1)....
[...]
01 Jan 2005
TL;DR: In this paper, costes del suministro de electricidad in Canarias durante el periodo 1970-1998 were studied. Andrés et al. evaluated the efecto of la intervencion publica and la regulación economica in unperiodo de consolidación del sector in canarias.
Abstract: En este trabajo estudiamos los costes del suministro de electricidad en Canarias durante el periodo 1970-
1998. El objetivo principal es evaluar los efectos de la intervencion publica y la regulacion economica en un
periodo de consolidacion del sector en Canarias. Para ello se estima una funcion de costes translogaritmica
de largo plazo utilizando como unidad de estudio la empresa Unelco. Los resultados indican que los factores
de produccion son sustitutivos entre si y que se agota el grado de economias de escala al final del periodo en
torno a los 3800 GWh distribuidos y comercializados. Se observan importantes ganancias de productividad
en torno a un 4,1% medio anual donde destaca el efecto positivo del cambio tecnico. La intervencion publica,
en su proceso de consolidacion del sector, y el efecto de la regulacion derivada del Marco Legal y Estable,
supusieron cambios en el funcionamiento de la empresa que se tradujeron en cuantiosos ahorros de costes.
References
More filters
Book•
25 Jul 1986TL;DR: In this paper, the authors propose a homogeneity test for linear regression models (analysis of covariance) and show that linear regression with variable intercepts is more consistent than simple regression with simple intercepts.
Abstract: 1. Introduction 2. Homogeneity test for linear regression models (analysis of covariance) 3. Simple regression with variable intercepts 4. Dynamic models with variable intercepts 5. Simultaneous-equations models 6. Variable-coefficient models 7. Discrete data 8. Truncated and censored data 9. Cross-sectional dependent panel data 10. Dynamic system 11. Incomplete panel data 12. Miscellaneous topics 13. A summary view.
6,234 citations
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Abstract: This classic text has proven its worth in university classrooms and as a tool kit in research--selling over 40,000 copies in the United States and abroad in its first edition alone. Users have included undergraduate and graduate students of economics and business, and students and researchers in political science, sociology, and other fields where regression models and their extensions are relevant. The book has also served as a handy reference in the "real world" for people who need a clear and accurate explanation of techniques that are used in empirical research.Throughout the book the emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus. Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases. And while a relatively high degree of rigor is preserved, every conflict between rigor and clarity is resolved in favor of the latter. Apart from its clear exposition, the book's strength lies in emphasizing the basic ideas rather than just presenting formulas to learn and rules to apply.The book consists of two parts, which could be considered jointly or separately. Part one covers the basic elements of the theory of statistics and provides readers with a good understanding of the process of scientific generalization from incomplete information. Part two contains a thorough exposition of all basic econometric methods and includes some of the more recent developments in several areas.As a textbook, "Elements of Econometrics" is intended for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in econometrics. Researchers in the social sciences will find it an invaluable reference tool.A solutions manual is also available for teachers who adopt the text for coursework.Jan Kmenta is Professor Emeritus of Economics and Statistics, University of Michigan.
3,838 citations
TL;DR: In this paper, a simple test for heteroscedastic disturbances in a linear regression model is developed using the framework of the Lagrangian multiplier test, and the criterion is given as a readily computed function of the OLS residuals.
Abstract: A simple test for heteroscedastic disturbances in a linear regression model is developed using the framework of the Lagrangian multiplier test. For a wide range of heteroscedastic and random coefficient specifications, the criterion is given as a readily computed function of the OLS residuals. Some finite sample evidence is presented to supplement the general asymptotic properties of Lagrangian multiplier tests.
3,629 citations
Book•
01 Jun 1985
TL;DR: In this article, the authors proposed a method to improve the quality of the information provided by the user by using the information of the user's interaction with the service provider and the user.
Abstract: Фундаментальный учебник по теории развития сельского хозяйства как отрасли. Рассматривается развитие сектора в историческом масштабе, специфика развития отрасли в развитых и развивающихся странах (с акцентом на развитие в странах с избыточной рабочей силой). В книге представлены следующие темы: аграрная экономика и её роль в общем процессе экономического развития, структурная трансформация, стратегии и модели развития сельского хозяйства и аграрная структура, взаимосвязь сельского хозяйства и промышленности, государственная политика в области сельского хозяйства, макроэкономика и сельское хозяйство, либерализация торговли сельскохозяйственной продукцией.
2,595 citations
Posted Content•
TL;DR: In this article, the authors developed two methods for imposing curvature conditions globally in the context of cost function estimation, based on a generalization of a functional form first proposed by McFadden.
Abstract: Empirically estimated flexible functional forms frequently fail to satisfy the appropriate theoretical curvature conditions. Lau and Gallant and Golub have worked out methods for imposing the appropriate curvature conditions locally, but those local techniques frequently fail to yield satisfactory results. We develop two methods for imposing curvature conditions globally in the context of cost function estimation. The first method adopts Lau's technique to a generalization of a functional form first proposed by McFadden. Using this Generalized McFadden functional form, it turns out that imposing the appropriate curvature conditions at one data point imposes the conditions globally. The second method adopts a technique used by McFadden and Barnett, which is based on the fact that a non-negative sum of concave functions will be concave. Our various suggested techniques are illustrated using the U.S. Manufacturing data utilized by Berndt and Khaled
1,014 citations