Production theory: accounting for firm heterogeneity and technical change

Giovanni Dosi, Marco Grazzi, Luigi Marengo, Simona Settepanella

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

9 Citazioni (Scopus)


The paper presents a new framework to assess firm level heterogeneity and to study the rate and direction of technical change. Building on the analysis of revealed short-run production functions by Hildenbrand (1981), we propose the (normalized) volume of the zonotope composed by vectors-firms in a narrowly defined industry as an indicator of inter-firm heterogeneity. Moreover, the angles that the main diagonal of the zonotope form with the axes provide a measure of the rates and directions of productivity change over time. The proposed framework also accounts for n-inputs and m-outputs and, crucially, the measures of heterogeneity and technical change do not require many of the standard assumptions from production theory.
Lingua originaleEnglish
pagine (da-a)875-907
Numero di pagine33
RivistaJournal of Industrial Economics
Stato di pubblicazionePubblicato - 2016


  • Activity Analysis
  • Heterogeneous firms
  • Production functions
  • Production theory
  • Technical change
  • Zonotopes


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