There are many economic activities where the cost function can be approximated by a fixed initial cost and a constant (sometimes zero) marginal cost as with book publishing, public utilities, and innovations. In the absence of technical advance, an economy that grows in scale could nevertheless...

In the paper, the sources of productivity growth are investigated by an empirical analysis with micro data for West-German manufacturing firms. The theoretical framework corresponds to an augmented growth accounting approach based on a production function. The empirical results reveal that...