Production function shifts in Soviet postwar industry: the mid 1970's shift

The Soviet economy experienced a marked decline in the rate of growth of output in the mid 1970s. Research was conducted for Soviet postwar industry in order to try and identify when the shift was strongest, and in which industrial branches. A statistical technique known as the "Chow Test" was used to test for a "break" year -- the year when the production function most dramatically changed.

Regression results showed that two types of industry -- that which was closely associated with military production, and industry responsible for producing consumer goods, showed little or no shift in the mid 1970s. The remaining sectors, which were primarily resource intensive, did show a significant shift in 1974.

A description of the investigation, including input data and regression results, is included.