This paper evaluates the methodological foundations of some recent attempts to estimate econometrically the degree of market power and the degree of returns to scale in manufacturing. The method discussed is based on estimating the aggregate production function in growth rate form. It is argued,...

This paper puts forward a demand-orientated model of economic growth, as an alternative to the supply-orientated approach of neoclassical theory, and evaluates the extensive research testing the dynamic Harrod trade multiplier model developed by Thirlwall and extended by McCombie. It is critical...

This paper considers the estimation of putative neoclassical aggregate labour demand functions using constant price value data. Regression results normally find that employment is negatively related to the real wage and that the constant-output elasticity of employment with respect to the real...

This paper considers the implications of the conceptual difference between the rental price of capital, embedded in the neoclassical cost identity (output equals the cost of labor plus the cost of capital), which is used in growth accounting studies; and the accounting profit rate, which can be...

This paper traces the development of the Cobb-Douglas production function from its inception in 1927 and critically assesses its early hostile reception. Further econometric evidence is also presented on these issues. Some of the criticisms were easily dealt with, but other more serious ones...

This paper reconsiders the argument that empirical estimations of aggregate production functions may be interpreted merely as statistical artefact. The reason is that Occam's razor, or Herbert Simon's principle of parsimony, suggests that the aggregate production function, together with the side...

In an article in the 2006 volume of this journal, Jonathan Temple presented a defence of the use of the aggregate production function in growth theory in the light of various criticisms that have been levelled at it. These criticisms include the Cambridge Capital Theory Controversies, various...