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The empirical assessment of technology differences: comparing the comparable

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This paper compares technologies across space and time on the basis of factual and counterfactual substitution elasticities and argues that differences in estimated substitution elasticities should be decomposed into two counterfactual components. While the first component is designed to indicate ho...

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Bibliographic Details
Main Authors: Frondel, Manuel (Author) , Schmidt, Christoph M. (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Mannheim ZEW October 2002
Series:ZEW discussion paper no. 02-63
In: ZEW discussion papers (no. 02-63)

Subjects:
1958-1996
Graue Literatur
Arbeitspapier
Online Access:Resolving-System, Volltext: http://hdl.handle.net/10419/24542
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Author Notes:Manuel Frondel and Christoph M. Schmidt

MARC

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520 |a This paper compares technologies across space and time on the basis of factual and counterfactual substitution elasticities and argues that differences in estimated substitution elasticities should be decomposed into two counterfactual components. While the first component is designed to indicate how the ease of substitution is altered by varied economic circumstances, the second addresses the question of how technologies would compare under genuinely comparable situations. This argument is illustrated by the example of energy-price elasticities of capital before and after the oil crisis of the early 1970s. 
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