Estimating and decomposing the rate of technical change in the Swedish pulp and paper industry : A general index approach

• The purpose of this paper is to analyse the rate and the impacts of technical change in the Swedish pulp and paper industry. In contrast to earlier research on this industry we replace the standard time trend with time-specific dummy variables enabling the estimation and decomposing of a general index of technical change. The analysis is made within a Translog cost function model, which is estimated using a panel data set with observations across individual paper and board mills over the time period 1974–1994. Our results indicate that the highest rates of technical change have generally occurred during the latter part of this period. Pure technical change is the primary component that has directed technical change over the entire time period. We also find evidence of non-neutral technical change. Energy use has been stimulated by technical improvements while labour use has been discouraged. Also, technical change has had wastepaper and woodpulp using impacts. However, the magnitudes of these latter impacts are relatively small, implying that the increase in wastepaper use during the last decades has mainly been stimulated by relative price changes.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Economics

Nationalekonomi

Publication and Content Type

ref (subject category)

art (subject category)