Download or read book Elasticity of Substitution Between Capital and Labor and Its Applications to Growth and Development written by Samuel D. Pessoa and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the elasticity of substitution of an aggregate production function. The estimating equation is derived from the steady state of a neoclassical growth model. The data comes from the PWT in which different countries face different relative prices of the investment good and exhibit different investment-output ratios. Then, taking advantage of this variation we estimate the long-run elasticity of substitution. Using various estimation techniques, we find that the elasticity of substitution is 0.7, which is lower than the elasticity, 1, that is traditionally used in macro-development exercises. We show that this lower elasticity reinforces the power of the neoclassical model to explain income differences across countries as coming from differential distortions.
Download or read book Quantifying the Impact of Financial Development on Economic Development written by Jeremy Greenwood and published by DIANE Publishing. This book was released on 2010-10 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for the years 1974 and 2004. It is then used to study the international data, using cross-country interest-rate spreads and per-capita GDP. The analysis suggests that a country like Uganda could increase its output by 140 to 180 percent if it could adopt the world's best practice in the financial sector. Still, this amounts to only 34 to 40 percent of the gap between Uganda's potential and actual output. Charts and tables.
Download or read book Sectoral elasticities of substitution between capital and labor in a developing economy written by Jere R. Behrman and published by . This book was released on 1970 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Theory of Wages written by John Hicks and published by . This book was released on 1964 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Estimation of Industry Level Capital Labor Substitution Elasticities for U S Production written by Edward J. Balistreri and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key parameter that determines the distributional impacts of a policy shift in general equilibrium simulations is the elasticity of substitution between capital and labor. Using a rich new data set by the Bureau of Economic Analysis, we estimate substitution elasticities for 28 industries and provide an indication of the long- and short-run estimates. Given the structure of most growth models, we posit that the relationship between capital and labor is likely to be close to Cobb-Douglas. Our findings lend support to the Cobb-Douglas specification as a transparent starting point in simulation analysis.
Download or read book Economic Development Patterns Inflations and Distributions written by Byung Ok Lim and published by Routledge. This book was released on 2018-10-29 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: The focal point of this study, first published in 1991, is to investigate the effect of growth patterns on inflation and the distribution of income through inductive examination of the particular experiences in Korea and Taiwan. Both countries are regarded as models of successful industrialization, but contrast significantly in the matter of their development strategy yielding a more equitable distribution of income, along with a moderate inflation from the benefits of economic growth. Korea experienced considerable rates of inflation and a worsening of the distribution of income, while Taiwan avoided both economic evils. This book analyses how Taiwan’s economy managed to reconcile growth with inflation and distribution and why Korea could not achieve similar performance.
Download or read book On the Substitution of Private and Public Capital in Production written by Zidong An and published by International Monetary Fund. This book was released on 2019-11-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most macroeconomic models assume that aggregate output is generated by a specification for the production function with total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect substitutes. In this paper we test this assumption by estimating a nested-CES production function whereas the two types of capital are considered separately along with labor as inputs. The estimation is based on our newly developed dataset on public and private capital stocks for 151 countries over a period of 1960-2014 consistent with Penn World Table version 9. We find evidence against perfect substitutability between public and private capital, especially for emerging and LIDCs, with the point estimate of the elasticity of substitution estimated closely around 3.
Download or read book Economic Growth and the CES Production Function with Human Capital written by Gerald Daniels and published by . This book was released on 2017 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Employing a neoclassical growth model with a constant elasticity of substitution production function, we develop a comparative static and dynamic analysis of the effects of the elasticity of substitution between inputs on the steady state growth path, growth threshold, speed of convergence and savings rates. Unlike earlier studies along these lines, we incorporate human capital, along with physical capital and raw labor, as a third input in the production function. We prove that a higher elasticity of substitution between inputs can lead to a higher steady state level for income per effective unit of labor. To illustrate the quantitative significance of the elasticity of substitution, we consider two ways in which human capital enters the production function. Employing cross country data, we find estimates for the normalized CES production functions with human capital to be significantly below unity.
Download or read book Structural Funds Growth Employment and the Environment written by Nicos Christodoulakis and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: Structural Funds: Growth, Employment and the Environment is a book on the role of transfers designed for assisting sustainable development of less developed regions within the European Union. The book places special emphasis on the future path of the Greek economy and discusses likely outcomes -related directly to the impact of these transfers- in: Growth and macroeconomic convergence Employment in key sectors of the economy Energy demand and its environmental aspect The book uses macroeconomic modelling and modern applied econometric techniques to analyze these issues, thus offering a coherent methodological framework for their presentation. To this extent, Structural Funds: Growth, Employment and the Environment can serve to: Academic researchers and economists in recipient countries who can gain a better understanding of how national authorities can best design and implement the strategic allocation and utilization of these funds to maximize the benefits for the domestic economy Policymakers in the European Union by offering a sound and rigorously elaborated treatment which can be applied as an estimation and comparison tool for the effects of Structural Funds both at the national and the international level Economists in Eastern European countries which are at the pre-accession stage and will be eligible for this type of transfers in the near future.
Download or read book Economic Growth and Development written by Olivier La Grandville and published by Emerald Group Publishing. This book was released on 2011-12-12 with total page 608 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the very beginnings of economics as a science, which might be dated from Ibn Khaldun's "Introduction to History" (1377), the challenge of making societies escape from poverty and attain some degree of prosperity has always been, and can remain, a fundamental issue. This book presents research on each of these issues.
Download or read book TURKISH ECONOMIC ASSOCIATION INTERNATIONAL CONFERENCE ON ECONOMICS ICE TEA 2018 written by Ercan Uygur and published by Türkiye Ekonomi Kurumu. This book was released on 2018-12-31 with total page 2118 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Elasticity of Substitution Between Lower Educated Labour and Other Factors of Production in the Netherlands written by G. E. Hebbink and published by . This book was released on 1990 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What Determines the Elasticity of Substitution Between Capital and Labor A Literature Review written by Michael Knoblach and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Research and Development and Economic Growth productivity written by National Science Foundation (U.S.) and published by . This book was released on 1972 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Technical Change Variable Elasticity of Substitution and Economic Growth written by Sharmila Gamlath and published by . This book was released on 2015 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We incorporate a variable elasticity of substitution production function into an overlapping generations model à la Diamond (1965). We show that a certain parameter in the production function is a source of biased technical change is a crucial determinant of the economy's growth dynamics. For positive values of this parameter, which lead to an elasticity of substitution between capital and labour which is greater than 1, the economy always reaches a unique and stable steady state which is similar to the conditional convergence in the standard Solow growth model. For negative values of this parameter, which yield an elasticity of substitution below 1, the economy could either fall into a poverty trap; or display two steady states, of which one is stable while the other is not, which could, depending on the value of the initial capital stock, potentially result in divergence towards unbounded growth. These different outcomes are consistent with the observed diversity in international growth experiences. The capital biased technical change generated by a higher value of this parameter improves productivity in steady state, but causes an exacerbation of intergenerational inequality.
Download or read book Handbook of Economic Growth written by Philippe Aghion and published by Elsevier. This book was released on 2005-12-09 with total page 1139 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbooks in Economics series continues to provide the various branches of economics with handbooks which are definitive reference sources, suitable for use by professional researchers, advanced graduate students, or by those seeking a teaching supplement.The Handbook of Economic Growth, edited by Philippe Aghion and Steven Durlauf, with an introduction by Robert Solow, features in-depth, authoritative survey articles by the leading economists working on growth theory.Volume 1A, the first in this two volume set, covers theories of economic growth, the empirics of economic growth, and growth policies and mechanisms.Volume 1B, the second in this two volume set, covers technology, trade and geography, and growth and socio-economic development.
Download or read book Structural Change Market Concentration and Inequality written by Yasuyuki Osumi and published by Springer Nature. This book was released on with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt:
