Search Results - subject:"elasticity of substitution"

A note on testing for complementarity and substitutability in the case of multiple practices

Carree, Martin Anthony; Lokshin, Boris; Belderbos, René - 2010

Persistent link: https://www.econbiz.de/10009522570

Steady-state growth and the elasticity of substitution

Irmen, Andreas - 2010

of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the … assessment of Klump and de La Grandville (2000) that the elasticity of substitution is a powerful engine of economic growth … aggregate output. -- capital accumulation ; elasticity of substitution ; direction of technical change ; neoclassical growth …

Persistent link: https://www.econbiz.de/10003938203

Panel data estimates of the production function and product and labor market imperfections

Dobbelaere, Sabien; Mairesse, Jacques - 2010

Embedding the efficient bargaining model into the R. Hall (1988) approach for estimating price-cost margins shows that both imperfections in the product and labor markets generate a wedge between factor elasticities in the production function and their corresponding shares in revenue. This...

Persistent link: https://www.econbiz.de/10011377461

Consumption paths under prospect utility in an optimal growth model

Foellmi, Reto; Rosenblatt-Wisch, Rina; Schenk-Hoppé, … - 2010

intertemporal elasticity of substitution (CIES) case and Kahneman and Tversky's prospect utility. We find that the transitional …

Persistent link: https://www.econbiz.de/10008797768

The Demand for Ethanol as a Gasoline Substitute

Anderson, Soren T. - 2010

This paper estimates household preferences for ethanol as a gasoline substitute. I develop a theoretical model linking the shape of the ethanol demand curve to the distribution of price ratios at which individual households switch fuels. I estimate the model using data from many retail fueling...

Persistent link: https://www.econbiz.de/10012462285

The Term Structure of Interest Rates in a DSGE Model with Recursive Preferences

van Binsbergen, Jules - 2010

We solve a dynamic stochastic general equilibrium (DSGE) model in which the representative household has Epstein and Zin recursive preferences. The parameters governing preferences and technology are estimated by means of maximum likelihood using macroeconomic data and asset prices, with a...

Persistent link: https://www.econbiz.de/10012462760

Intertemporal Consumption with Directly Measured Welfare Functions and Subjective Expectations

Kapteyn, Arie - 2010

elasticity of substitution based on the estimated welfare functions are plausible and of a similar order of magnitude as other …

Persistent link: https://www.econbiz.de/10012715674

Capital Deepening and Non-Balanced Economic Growth

Acemoglu, Daron - 2010

constant elasticity of substitution between two sectors and Cobb-Douglas production functions in each sector. In this class of …

Persistent link: https://www.econbiz.de/10012760696

Dynamic Consumption and Portfolio Choice with Stochastic Volatility in Incomplete Markets

Chacko, George - 2010

This paper analyzes optimal portfolio choice and consumption with stochastic volatility in incomplete markets. Using the Duffie-Epstein (1992) formulation of recursive utility in continuous time, it shows that the optimal portfolio demand for stocks under stochastic volatility varies strongly...

Persistent link: https://www.econbiz.de/10012763770

International Portfolio Allocation Under Model Uncertainty

Benigno, Pierpaolo - 2010

This paper proposes an explanation of the international home bias in equity based on ambiguity aversion. Doubts imply an additional hedging motif driven by the interaction between real exchange rate risk and ambiguity aversion. What matters is the long-run as opposed to the short-run risk....

Persistent link: https://www.econbiz.de/10012757854