whereIvitispartialelasticityofoutputwithrf'specttoi-thfactorinput,andbit=Xi,/L,theintensityofi-thfactortvithrespecttolaborInput.Ontheright-handsideofl;heaboveequatloll,thefirstcomponentisknownasthe"exogenoustechnicalprogress",nlalnlyduetoa'lvanceinkno\viedge;thesecondcomponentisattributedtoscaleeconomiesordiseconomles,thethirdcompollentisthetechnologicalchange,determinedbymarginalratesofsubstitutiolloffactors,factorintensitieswithrespecttolaborinputandtheirchanges.A>illexitlllpleofelllploylllgthe1llethodof