Factor Biases and Technical Change in Manufacturing: The American System, 1850–1919

This paper examines the proposition that U.S. manufacturing experienced biased technical change during the period 1850–1919. Tests for bias, in Hicksian terms, are conducted using the translog cost dual. Redefined census data permit these tests to be made at the two-digit level of industry classific...

Full description

Saved in:
Bibliographic Details
Published in:The Journal of economic history 1981-06, Vol.41 (2), p.341-360
Main Authors: Cain, Louis P., Paterson, Donald G.
Format: Article
Language:English
Subjects:
Economic history
Elasticity of demand
Entrepreneurs
Factor prices
Industrial sectors
Manufacturing industries
Materials
Metals industries
Papermaking
Textile manufacture
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper examines the proposition that U.S. manufacturing experienced biased technical change during the period 1850–1919. Tests for bias, in Hicksian terms, are conducted using the translog cost dual. Redefined census data permit these tests to be made at the two-digit level of industry classification and with four inputs considered—labor, capital, materials, and a residual factor input. The tests demonstrate that labor-saving and capital-using biases existed, but material-using biases also were present. Furthermore, the patterns of bias varied considerably from industry to industry and often were of such a magnitude as to overpower ordinary substitution effects.
ISSN:0022-0507
1471-6372
DOI:10.1017/S0022050700043606