A Double Calibration Approach to the Estimation of Technological Change

This paper suggests a new methodology for evaluating technological change in a multi-sector general equilibrium framework. The double calibration technique was applied to an ex post decomposition analysis of technological change between two periods, enabling a distinction to be made between price-induced and factor-biased technological changes for each sector. The method is applied to an empirical case— the oil crises in Japan between 1970 and 1980. JEL classification: D57, D58, O3