Download or read book Estimates of Substitution Elasticities and Factor Augmented Technical Changes written by Taoyuan Wei and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper estimates substitution elasticity between labor and capital in a constant elasticity of substitution (CES) production function based on the World Input-Output Database (WIOD, Timmer 2012). I estimate the elasticities and growth rates of factor-augmented technical progress based on the two first order conditions (FOCs) under the assumption of competitive profit-maximization producers. Taking into account for the capital as a fixed input and the labor as a variable input in the short term particularly within a year, I adopt the FOC with respect to capital where capital input is the explanatory variable and the FOC with respect to labor where wage rate is the explanatory variable. The results show that the industrial elastisities fall within a range from 0.4 to 0.9 and aggregate country-level elasticity is around 0.62. 90% of the estimated annual changes in factor-augmented technology fall within a range from -0.12 to 0.17. At the country level, 35 of the 40 countries exhibit net labor-augmenting technical progress.
Download or read book Estimation of Substitution Elasticities in Three Factor Production Functions written by Julius Frieling and published by . This book was released on 2017 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Existing estimation methods for multi-factor CES functions require limiting assumptions about the nature of technical change. We demonstrate how a system of equations and a fixed elasticity in the nested process can provide identification for more flexible specifications and for small data samples. We evaluate the role of energy inputs in an aggregate production function using data for Germany. The use of a Cobb-Douglas process for capital and labor by other studies biases elasticity estimates upwards. The estimated low elasticity means that energy availability is a potentially limiting factor for growth and that productivity gains for capital and labor are energy-using.
Download or read book Empirical Essays on the Elasticity of Substitution Technical Change and Economic Growth written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the elasticity of substitution using two different production functions. The usual Constant Elasticity of Substitution (CES) production function and a Box-Cox production function for Japan (1890-1991), UK (1870-1991), and US (1890-1992; 1929-2000). The main results are that we find the ES to be non-unitary and changing over time. Our findings have implications for economic growth (theoretical and empirical), as production is an increasing function of the ES. The use of a Cobb-Douglas production function, as in most cases in the literature, hides the role of the ES not only as a source of increase in output but also as a source of technical change. Also, we found in a monte carlo simulation that usual CES production usually does not give reliable estimates for the substitution parameter. Finally, using a CES to calculate TFP across countries, we found that variance of TFP is lower than using a Cobb-Douglas. It implies that the importance of TFP to explain income differences across countries is diminished.
Download or read book Production Technology Estimates and Balanced Growth written by Miguel A. Leon-Ledesma and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital-labour substitution and total factor productivity (TFP) estimates are essential features of many economic models. Such models typically embody a balanced growth path. This often leads researchers to estimate models imposing stringent prior choices on technical change. We demonstrate that estimation of the substitution elasticity and TFP growth can be substantially biased if technical progress is thereby mis-specified. We obtain analytical and simulation results in the context of a model consistent with balanced and near-balanced growth (i.e. departures from balanced growth but broadly stable factor shares). Given this evidence, a constant elasticity of substitution production function system is then estimated for the US economy. Results show that the estimated substitution elasticity tends to be significantly lower using a factor-augmenting specification (well below one). We are also able to reject conventional neutrality forms in favour of general factor augmentation with a non-negligible capital-augmenting component. Our work thus provides insights into production and supply-side estimation in balanced-growth frameworks.
Download or read book In dubio pro CES supply estimation with mis specified technical change written by Miguel A. León-Ledesma and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book On Estimating the Elasticity of Substitution for Primary Energy Documenting Negative Results with Traditional Methods written by Stanford University. Energy Modeling Forum and published by . This book was released on 1977 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Identifying the elasticity of substitution with biased technical change written by Miguel A. León-Ledesma and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Technical Change and the Elasticity of Factor Substitution written by Jürgen Antony and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Empirical Essays on the Elasticity of Substitution Technical Change and Economic Growth written by Claudiney Magalhães Pereira and published by . This book was released on 2003 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: Keywords: elasticity of substitution, estimation, production theory.
Download or read book Factor Substitution and Productivity in New Zealand written by Daan Steenkamp and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper produces aggregate and industry estimates of total factor productivity (TFP) for New Zealand. TFP is estimated based on constant elasticity of substitution (CES) production functions that permit varying assumptions about factor augmentation and that allow for industry-specific values of the elasticity of substitution between inputs. The CES approach simultaneously explains changes in labour share and output over time, and provides estimates of the contribution of capital and labour to productivity in New Zealand. The results suggest that negative capital-augmenting technical change in several industries has weighed on productivity in New Zealand.
Download or read book The Measurement of Biased Technical Change in the Many Factors Case written by Hans P. Binswanger-Mkhize and published by . This book was released on 1972 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Proceedings of the 2nd International Conference Quantitative and Qualitative Methodologies in the Economic and Administrative Sciences written by Christos Frangos and published by Christos Frangos. This book was released on 2009 with total page 595 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimating the Elasticity of Substitution from International Manufacturing Census Data written by Merle Ina Yahr and published by . This book was released on 1967 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimation of the Partial Elasticity of Substitution Among Factor Inputs in Case of Misspecification of Production Function written by Mohamed Ahmed Harhur and published by . This book was released on 1981 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book New Developments in Productivity Analysis written by Charles R. Hulten and published by University of Chicago Press. This book was released on 2007-11-01 with total page 648 pages. Available in PDF, EPUB and Kindle. Book excerpt: The productivity slowdown of the 1970s and 1980s and the resumption of productivity growth in the 1990s have provoked controversy among policymakers and researchers. Economists have been forced to reexamine fundamental questions of measurement technique. Some researchers argue that econometric approaches to productivity measurement usefully address shortcomings of the dominant index number techniques while others maintain that current productivity statistics underreport damage to the environment. In this book, the contributors propose innovative approaches to these issues. The result is a state-of-the-art exposition of contemporary productivity analysis. Charles R. Hulten is professor of economics at the University of Maryland. He has been a senior research associate at the Urban Institute and is chair of the Conference on Research in Income and Wealth of the National Bureau of Economic Research. Michael Harper is chief of the Division of Productivity Research at the Bureau of Labor Statistics. Edwin R. Dean, formerly associate commissioner for Productivity and Technology at the Bureau of Labor Statistics, is adjunct professor of economics at The George Washington University.
Download or read book Testing the Induced Innovation Hypothesis in South African Agriculture written by Colin G. Thirtle and published by World Bank Publications. This book was released on 1995 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Elasticities Markups and Technical Progress written by Colin Ellis and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
