Production theory and Zonotopes: accounting for firm heterogeneity and technical change.

Speaker:  Simona Settepanella - Hokkaido University, Sapporo, Japan
  Thursday, March 5, 2015 at 11:00 AM Aula H

 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. 

 


Contact person
Giandomenico Orlandi

Publication date
March 5, 2015

Studying