An average machine lags in terms of productivity and technological advancement behind a cutting-edge machine. This lag was first defined by Cummins and Violante (2002) as the technology gap. Using the vector error correction model, I show that the technology gap is cointegrated with human...

The discrete choice model generally captures consumers' valuation of the product's quality within the framework of a cross-sectional analysis, while the diffusion model captures the dynamics of demand within the framework of a time-series analysis. We propose an adjusted discrete choice model...