Productivity and welfare

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


Technical change is generally characterized by a rate and biases, both evaluated for given producer prices. This paper examines the potential discrepancy between this rate and the corresponding rate of consumer welfare change as measured by Allais distributable surplus. We postulate a general equilibrium context with various market failures (taxes, quotas, imperfect competition, and "poorly priced" commodities), and use comparative statics to express the rate of welfare change in terms of the rate and biases of the technical change. An elementary simulation model of a taxed economy suggests that the rate of welfare change may differ from the rate of technical change by as much as 50% under plausible circumstances.

Original languageEnglish (US)
Pages (from-to)133-155
Number of pages23
JournalJournal of Productivity Analysis
Issue number2
StatePublished - Oct 2005


  • Allias surplus
  • General equilibrium
  • Productivity

ASJC Scopus subject areas

  • Business and International Management
  • Social Sciences (miscellaneous)
  • Economics and Econometrics


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