Technological Progress and Structural Change in The Swedish Paper Industry 1972–1990

Short run macro production functions for the years 1972, 1980 and 1990 are constructed and used to analyse technological progress during the period. The use of energy and labour per unit of output fell by 40% for Average and 50% for Best Practice technology. Average Practice was estimated to lack 5 years behind Best Practice. Technological progress was largely labour-saving despite the drastic increase in energy price. Ex post substitution possibilities were very small with an elasticity value around 0.1.