Sato – Beckmann classification of accounting for technological progress: genesis, generalisation, and extension

  • Guennadi A. Khatskevich School of Business, Belarusian State University, 7 Špaliernaja Street, Minsk 220004, Belarus
  • Andrei F. Pranevich Yanka Kupala State University of Grodno, 22 E. Ažeška Street, Hrodna 230023, Belarus https://orcid.org/0000-0002-8714-0203

Abstract

In this paper, we consider inverse problems of identifying dynamic aggregated production functions from given conditions of neutrality of technological progress. Sets of production functions with Hicks neutral technological progress, Harrod neutral technological progress, and Solow neutral technological progress are described. The Sato – Beckmann classification of neutrality of technological progress for linear-homogeneous production functions is given. The Sato – Beckmann classification is generalised for general case of dynamic production function. Also, we supplemented the Sato – Beckmann classification with new conditions of neutrality of technological progress and obtained the corresponding forms of dynamic production functions. Using dependencies between three economic and mathematical characteristics of dynamic production function (elasticity of output with respect to capital, elasticity of output with respect to labour, and the factor proportions, the output-capital ratio, the output-labour ratio, the average product of generalised factor), we obtain new cases of neutrality of technological progress. By statistical data for 1990–2018, we built the dynamic production function with Hicks neutral technological progress for modeling the economic growth of the Republic of Belarus.

Author Biographies

Guennadi A. Khatskevich, School of Business, Belarusian State University, 7 Špaliernaja Street, Minsk 220004, Belarus

doctor of science (economics), full professor; head of the department of business administration

Andrei F. Pranevich, Yanka Kupala State University of Grodno, 22 E. Ažeška Street, Hrodna 230023, Belarus

PhD (mathematics and physics), docent; associate professor at the department of mathematics and computer science for economic systems, faculty of economics and management

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Published
2021-01-04
Keywords: production function, Hicks neutrality, Harrod neutrality, Solow neutrality, technological progress
How to Cite
Khatskevich, G. A., & Pranevich, A. F. (2021). Sato – Beckmann classification of accounting for technological progress: genesis, generalisation, and extension. Journal of the Belarusian State University. Economics, 2, 4-17. Retrieved from https://journals.bsu.by/index.php/economy/article/view/3421
Issue
No 2 (2020): Journal of the Belarusian State University. Economics
Section
C. Mathematical and Quantitative Methods

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