Search Results - subject:"elasticity of substitution"

Factor Shares, the Price Markup, and the Elasticity of Substitution between Capital and Labor

Raurich, Xavier; Sala, Hector; Sorolla, Valeri - Institute for the Study of Labor (IZA) - 2011

the product market, and provides estimates of the elasticity of substitution under such product market imperfections. We … focus on Spain and the U.S. and show that the elasticity of substitution is above one in Spain and below one in the U.S. We … also show that the price markup drives the elasticity of substitution away from one, upwards in Spain, downwards in the U …

Persistent link: https://www.econbiz.de/10009323398

Heterogenous intertemporal elasticity of substitution and relative risk aversion: estimation of optimal consumption choice with habit formation and measurement errors

Natalia, Khorunzhina; Wayne Roy, Gayle - Volkswirtschaftliche Fakultät, … - 2011

elasticity of substitution (IES) and the coefficient of relative risk aversion (RRA) that is generated by habit forming … intertemporal elasticity of substitution and relative risk aversion that account for measurement errors and compute asymptotically …

Persistent link: https://www.econbiz.de/10009353832

Estimating import price elasticity while controlling for quality

Thanagopal, Thannaletchimy - HAL - 2011

higher with adjustments for quality, although they do not reach unity as predicted by the theoretical elasticity of … substitution. The high values of price elasticity show that quality innovation not only encourages trade but also encourages …

Persistent link: https://www.econbiz.de/10009372658

The cost of reducing CO2 emissions: Integrating abatement technologies into economic modeling

Kiuila, Olga; Rutherford, Thomas F. - Wydział Nauk Ekonomicznych, Uniwersytet Warszawski - 2011

We explore two methods of incorporating bottom-up abatement cost estimates into top-down modeling: economy-wide and sector-specific. Carbon emissions depend basically on technology and scale. Given the technology options, abatement is possible without a substantial reduction in scale. Otherwise...

Persistent link: https://www.econbiz.de/10009395195

Fiscal Rules in a Volatile World; A Welfare-Based Approach

Restrepo, Jorge; Garcia, Carlos; Tanner, Evan - International Monetary Fund (IMF) - 2011

It is widely agreed that a fiscal rule should boost discipline and credibility, reduce macroeconomic volatility, and be easily understood. To support such goals, a government may run structural surpluses and accumulate a precautionary cushion of assets on behalf of agents who do not enjoy access...

Persistent link: https://www.econbiz.de/10008876585

Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia

Sandri, Damiano; Rabanal, Pau; Méjean, Isabelle - International Monetary Fund (IMF) - 2011

A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in the terms of trade and real exchange rates in a...

Persistent link: https://www.econbiz.de/10008876596

Heterogeneous Productivity Shocks, Elasticity of Substitution and Aggregate Fluctuations

Alessio, Moro; Rodolfo, Stucchi - Volkswirtschaftliche Fakultät, … - 2011

the dispersion of firms' productivity. When the elasticity of substitution among goods is larger than one, an increase in … productivity by 0.59% in sectors with an elasticity of substitution larger than one while the same increase in the coefficient of … variation reduces aggregate productivity by 0.07% in sectors with an elasticity of substitution smaller than one. …

Persistent link: https://www.econbiz.de/10008854414

Marshall`s Rules with Aggregate Inputs

Behar, Alberto - In: Economics Bulletin 31 (2011) 1, pp. 812-819

We establish the formal link between the separability of inputs in a production function and the aggregate elasticity of demand for those inputs. This validates the implicit assumption used when calculating an aggregate elasticity with aggregated input prices and provides a practical approach to...

Persistent link: https://www.econbiz.de/10008861878

Mind the gap! A note on the income and the substitution effects

Panaccione, Luca - In: Economics Bulletin 31 (2011) 1, pp. 807-811

In this note, I study how the magnitude of the substitution and the income effects affects the change in the demand for a good following an own-price variation in a single consumer choice model with multiple goods.

Persistent link: https://www.econbiz.de/10008861879

A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case

Xie, Daniel Danxia - Peter G. Peterson Institute for International Economics … - 2011

th and 19th century, respectively. Finally, he proposes a two-sector constant elasticity of substitution (CES …

Persistent link: https://www.econbiz.de/10008828612