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Firm-Heterogeneous Biased Technological Change: A nonparametric approach under endogeneity

Abstract : We propose a fully nonparametric framework to test to what extent technological change is factor-biased and heterogeneous. We show in a Monte Carlo simulation that our framework resolves the endogeneity issue between productivity and input choice and provides accurate estimates of firm-specific biases. For all Belgian manufacturing industries analyzed, we reject the predominant assumption of Hicks-neutral technological change over the period 1996–2015. We find that technological change is skill-biased, capital saving and domestic materials using. Moreover, we find significant heterogeneity in the pattern of technological change between and within industries. Relying on a rich dataset of firm characteristics, we provide robust indications that firm-level technological change can be attributed to specific firm strategies and technological characteristics.
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Submitted on : Thursday, July 21, 2022 - 11:37:45 AM
Last modification on : Tuesday, December 6, 2022 - 12:42:13 PM
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Ruben Dewitte, Michel Dumont, Bruno Merlevede, Glenn Rayp, Marijn Verschelde. Firm-Heterogeneous Biased Technological Change: A nonparametric approach under endogeneity. European Journal of Operational Research, 2020, 283 (3), pp.1172-1182. ⟨10.1016/j.ejor.2019.11.063⟩. ⟨hal-03001787⟩



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