The Post-War Aggregate Production Function in Canada: 1946-1988

Estimates in the framework of a basic neoclassical Cobb-Douglas production function using annual data showed the existence of increasing returns. Furthermore, there was evidence of an increasing importance of capital, especially in the 1980s. Our results also suggest the importance of embodied technological progress, whereas disembodied technical progress by and large appears to be statistically insignificant. The thrust of these findings parallels that established from similar studies of the U.S. economy.