Estimating Technological Change Using a Stochastic Frontier Production Function Framework : Evidence from U . S . Firm-Level Data

  title={Estimating Technological Change Using a Stochastic Frontier Production Function Framework : Evidence from U . S . Firm-Level Data},
  author={Rajeev Dhawan},
This paper presents a methodology for estimating an index of technological change using firm-level data in a stochastic frontier production function model that takes into account time-varying technical inefficiency. In contrast to the Solow divisia index approach, econometric estimation of the index with panel data allows the researcher to separate technical progress from the stochastic measurement error. Applying the econometric methodology to a panel of 908 publicly-traded U.S. firms from the… CONTINUE READING


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