Heshmati, Almas; Kumbhakar, Subal C. - In: Economics of Innovation and New Technology 23 (2014) 1, pp. 25-48
In the neoclassical production theory technical change (TC) is specified as a function of time. However, some exogenous external factors other than time can also affect the rate of TC. In this paper, we model TC via a combination of time trend (purely non-economic) and other observable exogenous...