Capitalism, socialism, and productivity. An econometric analysis of CES and translog functions

Document Type

Article

Date of Original Version

1-1-1989

Abstract

The authors inquire whether there is a difference in productivity between capitalist and socialist economies, perhaps varying with the level of development. Data on 65 countries in 1975 provide a basis for estimating CES and translog functions relating national income to nine resource variables and two variables influencing productivity. Prior information on marginal products is used in deriving Bayesian estimates. The estimates indicate that although the relative productivity of socialist economies may decline with development, the differences in productivity are insignificant at all observed levels of development. © 1989.

Publication Title, e.g., Journal

European Economic Review

Volume

33

Issue

6

Share

COinS