INNOVATION AND TECHNOLOGICAL EVOLUTION IN A WESTERN EUROPEAN COUNTRY – THE CASE OF PORTUGAL

Abstract

The paper speaks of the technological evolution using a translog cost function for a western European country – Portugal. It begins by presenting the methodological framework, the estimation process based on the iterative Zellner method to estimate systems of seemingly unrelated regression equations (SURE), the empirical application to Portugal, and the interpretation of the results, namely in terms of the technological evolution.Technological evolution, Energy Economics, Translog Cost Function, SURE System.