The non-substitution theorem was first demonstrated by Samuelson and Georgescu-Roegen for a generalized model of Leontief. The theorem raised the question to know if the “deep-seated causes of [economic] development are to be found in the variations of the basic structural relationships...

This paper develops a new method for estimating production-function parameters that can be applied in differentiated-product industries with endogenous quality and variety choice. We take advantage of data on physical quantities of outputs and inputs from the Colombian manufacturing survey,...