A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES

This paper presents a simple methodology to estimate the elasticity of substitution between labor and capital for firms operating in perfectly competitive factor markets with constant-elasticity-of-substitution technologies. It is applied to a cross-country sample of 28 3-digit ISIC manufacturing in...

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Autor principal:	CLARO,SEBASTIÁN
Lenguaje:	English
Publicado:	Instituto de Economía, Pontificia Universidad Católica de Chile 2003
Materias:	Elasticity of Substitution International Technology Differences
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212003012000003
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spelling	oai:scielo:S0717-682120030120000032003-10-07A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIESCLARO,SEBASTIÁN Elasticity of Substitution International Technology Differences This paper presents a simple methodology to estimate the elasticity of substitution between labor and capital for firms operating in perfectly competitive factor markets with constant-elasticity-of-substitution technologies. It is applied to a cross-country sample of 28 3-digit ISIC manufacturing industries. The econometric procedure relies on measures of sectorial capital stock, that are estimated for 34 countries in 1990. Unlike previous studies, the estimates are compatible with international technology differences. The results reveal that in most industries the elasticity of substitution is close to one. However, the null hypothesis of Cobb-Douglas production functions is in general rejectedinfo:eu-repo/semantics/openAccessInstituto de Economía, Pontificia Universidad Católica de ChileCuadernos de economía v.40 n.120 20032003-08-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212003012000003en10.4067/S0717-68212003012000003
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Elasticity of Substitution International Technology Differences
spellingShingle	Elasticity of Substitution International Technology Differences CLARO,SEBASTIÁN A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
description	This paper presents a simple methodology to estimate the elasticity of substitution between labor and capital for firms operating in perfectly competitive factor markets with constant-elasticity-of-substitution technologies. It is applied to a cross-country sample of 28 3-digit ISIC manufacturing industries. The econometric procedure relies on measures of sectorial capital stock, that are estimated for 34 countries in 1990. Unlike previous studies, the estimates are compatible with international technology differences. The results reveal that in most industries the elasticity of substitution is close to one. However, the null hypothesis of Cobb-Douglas production functions is in general rejected
author	CLARO,SEBASTIÁN
author_facet	CLARO,SEBASTIÁN
author_sort	CLARO,SEBASTIÁN
title	A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
title_short	A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
title_full	A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
title_fullStr	A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
title_full_unstemmed	A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES
title_sort	cross-country estimation of the elasticity of substitution between labor and capital in manufacturing industries
publisher	Instituto de Economía, Pontificia Universidad Católica de Chile
publishDate	2003
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212003012000003
work_keys_str_mv	AT clarosebastian acrosscountryestimationoftheelasticityofsubstitutionbetweenlaborandcapitalinmanufacturingindustries AT clarosebastian crosscountryestimationoftheelasticityofsubstitutionbetweenlaborandcapitalinmanufacturingindustries
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A CROSS-COUNTRY ESTIMATION OF THE ELASTICITY OF SUBSTITUTION BETWEEN LABOR AND CAPITAL IN MANUFACTURING INDUSTRIES

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