257
Views
14
CrossRef citations to date
0
Altmetric
Original Articles

What is wrong with aggregate production functions. On Temple’s ‘aggregate production functions and growth economics’

&
Pages 665-684 | Published online: 25 Nov 2010

References

  • Barro , R. J. and Sala‐i‐Martin , X. 1998 . Economic growth. , (2nd ed, 2003) , Cambridge, MA : MIT Press .
  • Bronfenbrenner , M. 1971 . Income distribution theory , London : Macmillan .
  • Cobb , C.W. and Douglas , P.H. 1928 . A theory of production . American Economic Review , (Supplement) 18 ( 1 ) : 139 – 65 .
  • Collier , P. and O’Connell , S.A. 2007 . “ Opportunities and choices ” . In The political economy of economic growth in Africa, 1960–2000 , Edited by: Ndulu , B. , O’Connell , S.A. , Bates , R. , Collier , P. and Soludo , C. Vol. 1 , Cambridge : Cambridge University Press .
  • Diamond , P. , McFadden , D. and Rodriguez , M. 1978 . “ Measurement of the elasticity of factor substitution and bias of technical change ” . In Production economics: A dual approach to theory and applications, Vol. II, applications of the theory of production , Edited by: Fuss , M. and McFadden , D. Amsterdam : North‐Holland .
  • Douglas , P.H. 1976 . The Cobb‐Douglas production function once again: Its history, its testing, and some new empirical values . Journal of Political Economy , 84 ( 5 ) : 903 – 15 .
  • Easterly , W. and Levine , R. 2001 . What have we learned from a decade of empirical research on growth? It’s not factor accumulation: Stylized facts and growth models . World Bank Economic Review , 15 ( 2 ) : 177 – 219 .
  • Felipe , J. and Adams , F.G. 2005 . ‘A theory of production’. The estimation of the Cobb‐Douglas function: A retrospective view . Eastern Economic Journal , 31 ( 3 ) : 427 – 46 .
  • Felipe , J. and Fisher , F.M. 2003 . Aggregation in production functions: What applied economists should know . Metroeconomica , 54 ( May ) : 208 – 62 .
  • Felipe , J. and Holz , C. 2001 . Why do aggregate production functions work? Fisher’s simulations, Shaikh’s identity, and some new results . International Review of Applied Economics , 15 ( 3 ) : 261 – 85 .
  • Felipe , J. and McCombie , J.S.L. 2001 . The CES production function, the accounting identity, and Occam’s Razor . Applied Economics , 33 ( 10 ) : 1221 – 32 .
  • Felipe , J. and McCombie , J.S.L. 2003 . Methodological problems with neoclassical analyses of the East Asian miracle . Cambridge Journal of Economics , 27 ( 5 ) : 695 – 721 .
  • Felipe , J. and McCombie , J.S.L. 2005a . How sound are the foundations of the aggregate production function? . Eastern Economic Journal , 31 ( 3 ) : 467 – 88 .
  • Felipe , J. and McCombie , J.S.L. 2005b . Why are some countries richer than others? A sceptical view of Mankiw‐Romer‐Weil’s test of the neoclassical growth model . Metroeconomica , 56 ( 3 ) : 360 – 92 .
  • Felipe , J. and McCombie , J.S.L. 2006 . The tyranny of the identity: Growth accounting revisited . International Review of Applied Economics , 20 ( 3 ) : 283 – 99 .
  • Felipe , J. and McCombie , J.S.L. 2009 . Are estimates of labour demand functions mere statistical artefacts . International Review of Applied Economics , 23 ( 2 ) : 147 – 68 .
  • Felipe , J. , McCombie , J.S.L. and Hasan , R. 2008 . Correcting for biases when estimating production functions: An illusion of the laws of algebra? . Cambridge Journal of Economics , 32 : 441 – 59 .
  • Fisher , F.M. 1969 . The existence of aggregate production functions . Econometrica , 37 ( 4 ) : 553 – 77 .
  • Fisher , F.M. 1992 . Aggregation. Aggregate production functions and related topics , Edited by: Monz , J. London : Harvester Wheatsheaf .
  • Fisher , F.M. 2005 . Aggregate production functions: A pervasive, but unpersuasive, fairytale . Eastern Economic Journal , 31 ( 3 ) : 489 – 91 .
  • Friedman , M. 1953 . “ The methodology of positive economics ” . In Essays in positive economics , Edited by: Friedman , M. Chicago : Chicago University Press .
  • Garegnani , P. 1966 . Switching of techniques . Quarterly Journal of Economics , 80 ( 4 ) : 554 – 67 .
  • Griliches , Z. and Mairesse , J. 1998 . “ Production functions: The search for identification ” . In Econometrics and economic theory in the 20th century , Edited by: Strom , S. 169 – 203 . Cambridge : Cambridge University Press .
  • Hacche , G. 1979 . The theory of economic growth: An introduction , London : Macmillan .
  • Islam , N. 1995 . Growth empirics: A panel data approach . Quarterly Journal of Economics , 110 ( 4 ) : 1127 – 270 .
  • Jones , H.G. 1975 . An introduction to modern theories of economic growth , Middlesex : Nelson .
  • Jones , C.I. 1998 . Introduction to economic growth. , (2nd edn, 2002) , New York : WW Norton .
  • Jorgenson , D.W. and Griliches , Z. 1967 . The explanation of productivity change . Review of Economic Studies , 34 ( 99 ) : 249 – 83 .
  • Kaldor , N. 1961 . “ Capital accumulation and economic growth ” . In The theory of capital , Edited by: Lutz , F.A. and Hague , D.C. 177 – 222 . London : Macmillan .
  • Kenny , C. and Williams , D. 2001 . What do we know about economic growth? Or, why don’t we know very much? . World Development , 29 ( 1 ) : 1 – 22 .
  • Kuhn , T.S. 1962 . The structure of scientific revolutions. , (3rd edn, 1996) , Chicago : Chicago University Press .
  • Lakatos , I. 1970 . “ Falsification and the methodology of scientific research programmes ” . In Criticism and the growth of knowledge , Edited by: Lakatos , I. and Musgrave , A. Cambridge : Cambridge University Press .
  • Levine , R. and Renelt , D. 1992 . A sensitivity analysis of cross‐country growth regressions . American Economic Review , 82 ( 4 ) : 942 – 63 .
  • Levinsohn , J. and Petrin , A. 2003 . Estimating production functions using inputs to control for unobservables . Review of Economic Studies , 70 ( 2 ) : 317 – 41 .
  • Lucas , R.E. 1990 . Why doesn’t capital flow from rich to poor countries? . American Economic Review, Papers and Proceedings , 80 ( 2 ) : 92 – 6 .
  • Mankiw , G. 1995 . The growth of nations . Brookings Papers on Economic Activity , 26 ( 1 ) : 275 – 326 .
  • Mankiw , N.G. , Romer , D. and Weil , D.N. 1992 . A contribution to the empirics of economic growth . Quarterly Journal of Economics , 107 ( 2 ) : 407 – 37 .
  • Marshak , J. and Andrews , W.H. 1944 . Random simultaneous equations and the theory of production . Econometrica , 12 ( 3/4 ) : 143 – 205 .
  • McCombie , J.S.L. 1987 . Does the aggregate production function imply anything about the laws of production? A note on the Simon and Shaikh critiques . Applied Economics , 19 ( 8 ) : 1121 – 36 .
  • McCombie , J.S.L. 1998a . “ Paradigms, rhetoric, and the relevance of the aggregate production function ” . In Method, theory and policy in Keynes. Essays in honour of Paul Davidson, vol. III , Edited by: Arestis , P. Aldershot : Edward Elgar .
  • McCombie , J.S.L. 1998b . ‘Are there laws of production?’: An assessment of the early criticisms of the Cobb–Douglas production function . Review of Political Economy , 10 ( 2 ) : 141 – 73 .
  • McCombie , J.S.L. 2000 . Regional production functions and the accounting identity: A problem of interpretation . Australasian Journal of Regional Studies , 6 : 133 – 56 .
  • McCombie , J.S.L. 2000–2001 . The Solow residual, technical change, and aggregate production functions . Journal of Post Keynesian Economics , 23 ( 2 ) : 267 – 97 . (Errata, 23, no. 3: 544)
  • Olley , S. and Pakes , A. 1996 . The dynamics of productivity in the telecommunications equipment industry . Econometrica , 64 ( 6 ) : 1263 – 98 .
  • Phelps Brown , E.H. 1957 . The meaning of the fitted Cobb–Douglas function . Quarterly Journal of Economics , 71 ( 4 ) : 546 – 60 .
  • Reder , M.W. 1943 . An alternative interpretation of the Cobb–Douglas function . Econometrica , 11 ( 3/4 ) : 259 – 64 .
  • Rodrik , D. 2005 . Why we learn nothing from regressing economic growth on policies , Harvard University . (Unpublished manuscript)
  • Samuelson , P.A. 1961–1962 . Parable and realism in capital theory: The surrogate production function . Review of Economic Studies , 29 ( 3 ) : 193 – 206 .
  • Samuelson , P.A. 1966 . A summing up . Quarterly Journal of Economics , 80 ( 4 ) : 568 – 83 .
  • Shaikh , A. 1974 . Laws of production and laws of algebra, the Humbug production function . Review of Economics and Statistics , 56 ( 1 ) : 115 – 20 .
  • Shaikh , A. 1980 . “ Laws of production and laws of algebra: Humbug II ” . In Growth, profits and property , Edited by: Nell , E.J. Cambridge : Cambridge University Press .
  • Simon , H.A. 1979a . On parsimonious explanations of production relations . Scandinavian Journal of Economics , 81 ( 4 ) : 459 – 74 .
  • Simon , H.A. 1979b . Rational decision‐making in business organizations . American Economic Review , 69 ( 4 ) : 493 – 513 . (Nobel Memorial Lecture, 8 December, 1997)
  • Simon , H.A. and Levy , F.K. 1963 . A note on the Cobb–Douglas function . Review of Economic Studies , 30 ( 2 ) : 93 – 4 .
  • Solow , R.M. 1957 . Technical change and aggregate production function . Review of Economics and Statistics , 39 ( 3 ) : 312 – 20 .
  • Solow , R.M. 1958 . A skeptical note on the constancy of relative shares . American Economic Review , 48 ( 4 ) : 618 – 63 .
  • Solow , R.M. 1966 . Review of J.R. Hicks . Capital and Growth, American Economic Review , 56 ( 5 ) : 1257 – 60 .
  • Temple , J.R.W. 1999 . The new growth evidence . Journal of Economic Literature , 37 ( 1 ) : 112 – 56 .
  • Temple , J.R.W. 2006 . Aggregate production functions and growth economics . International Review of Applied Economics , 20 ( 3 ) : 301 – 17 .
  • Wan , H.Y. 1971 . Economic growth , New York : Harcourt Brace Jovanovich .
  • Wibe , S. 1984 . Engineering production functions: A survey . Economica , 51 ( 204 ) : 401 – 11 .
  • Weil , D.N. 2005 . Economic growth , Boston : Addison Wesley .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.