In this talk we will present a new framework to assess ﬁrm level heterogeneity and to study the rate and direction of technical change. Building on the analysis of revealed short-run production functions by Hildenbrand in 1981, we propose the (normalized) volume of the zonotope composed by vectors-ﬁrms in a narrowly deﬁned industry as an indicator of inter-ﬁrm heterogeneity. Moreover, the angles that the main diagonal of the zonotope form with the axes provides a measure of the rates and directions of technical change over time. The proposed framework can easily account for n-inputs and m-outputs and, crucially, the measures of heterogeneity and technical change do not require many of the standard assumptions from production theory.
Strada le Grazie 15
VAT number 01541040232
Italian Fiscal Code 93009870234
© 2020 | Verona University | Credits