Lecture 22-2005 - Measuring Changes in Productivity Lecture...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Measuring Changes in Productivity Lecture XXII I. Defining Changes in Productivity A. The most basic concept of changes in productivity is that for a given level of inputs, we now get more output: () Yx 1 y 2 y 1 y 2 y 1 y 2 y 2 1 p p 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AEB 6184 – Production Economics Lecture XXII Professor Charles Moss Fall 2005 1. In this figure, we assume that the inputs are constant at x , but the total level of outputs has increased from ( ) 12 , yy to ( ) , . 2. Alternatively, in input space, it now takes fewer inputs to produce the same level of outputs. 1 x 2 x 2 x 1 x 1 x 2 x 3. In both cases, most would agree that a technical change has taken place. Further, most would agree that the technical change has increased the economic well being of society. We now have more stuff for the same level of inputs. 4. However, there are some issues that need to be raised: a. First, one could raise the question about embodied versus disembodied technical change. (i) This debate regards whether there has been an increase in knowledge, or whether there has been an increase in the quality of inputs. (ii) If the increase in output has been associated with an increase in quality of an input, is it technical change? (iii) For example, a large portion of the gains to research literature can be traced to Griliches discussion of hybrid corn. In this case, the increase in technology was associated with the improvement in an input–seed. (iv) More recently, some of the most recently observed increases in productivity may be traced to genetically modified organisms (GMOs).
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/15/2011 for the course AEB 6184 taught by Professor Staff during the Fall '09 term at University of Florida.

Page1 / 7

Lecture 22-2005 - Measuring Changes in Productivity Lecture...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online