Embodied Technical Change and the Age of Capital: Empirical Evidence for Manufacturing Establishments
The early work on vintage capital models marked an important departure from the traditional lines of development in the study of production. Embodied technical change became widely accepted as an intuitively plausible concept, and this resulted in a large volume of theoretical and empirical literature. Data used to test the validity of the vintage hypothesis was often unsatisfactory, however, because of its high level of aggregation. Through a lack of incisive evidence, the ‘new view’ of the world failed to cause the expected demise of the neo-classical theories of production and both have developed, side-by-side. The two theories are, nevertheless, largely competitive, and there have been a number of attempts to establish which approach provides the superior description of the real world.
KeywordsLabour Productivity Technical Change Labour Input Labour Usage Capital Intensity
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