Measures of industry productivity change: the case of thermal electricity generation in Chinese provinces 2000–2014

The typical textbook production theory for a single production unit, assuming substitution possibilities both ex ante and ex post between all factors of production, may not be so well suited for understanding structural change within industries characterised by embodied technical change and a significant presence of capital equipment that represents sunk cost. In the literature an industry function is often based on just aggregating micro-level...