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.
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