Product variety and technical change

Several trade-based measures of product variety have recently been used implicitly torepresent states of technology, promoting long-run growth. In this paper, we define thestate of technology as the range of specialised production processes and propose thevariety of capital goods available for production as a direct measure of technology...

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Year of publication:	2006-11-01
Authors:	FRENSCH, Richard ; GAUCAITE-WITTICH, Vitalija
Institutions:	Osteuropa-Institut <München>
Subject:	Anpassung \| Diffusion \| Jump diffusion \| Technologische Modellierung

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1 Introduction: product variety as a potential measure of technology
2 A testable hypothesis on the variety of available capital goods
2.1 Theoretical framework
2.2 Conditional convergence of states of technology
3 Measuring available product variety and some stylised facts
4 Empirical assessment
4.1 Assessing technical change through product variety
4.2. Data and specification
4.3 Estimation and discussion of the results
5 Conclusions

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