Search Results - subject:"elasticity of substitution"

Steady-State Growth and the Elasticity of Substitution

Irmen, Andreas - 2021

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 …

Persistent link: https://www.econbiz.de/10013316247

Factor Substitution, Income Distribution, and Growth in a Generalized Neoclassical Model

Irmen, Andreas; Klump, Rainer - 2021

elasticity of substitution. While the efficiency effect is always positive, the direction of the acceleration effect depends on …

Persistent link: https://www.econbiz.de/10013316692

Monetary Policy and Core Inflation

Lenza, Michele - 2021

This paper studies optimal monetary policy responses in an economy featuring sectorial heterogeneity in the frequency of price adjustments. It shows that a central bank facing heterogeneous nominal rigidities is more likely to behave less aggressively than in a fully sticky economy. Hence, the...

Persistent link: https://www.econbiz.de/10013316741

A Note on Allen-Uzawa Partial Elasticities of Substitution : The Case of the Translog Cost Function

Christev, Atanas; Featherstone, Allen M. - 2021

This note provides a useful property of the Allen-Uzawa partials for the translog cost function. It also suggests how the main results extend to any functional form with certain properties. The curvature of the Allen-Uzawa matrix is the same as the curvature of the Hessian matrix. Intuitively...

Persistent link: https://www.econbiz.de/10013317143

Shifts and Twists in the Relative Productivity of Skilled Labor

Dupuy, Arnaud; Marey, Philip - 2021

, but also the elasticity of substitution between skill-types of labor. Using data for the United States between 1963 and … 2002, we find significant empirical support for a decrease in the elasticity of substitution at the end of the 70s followed … by an increase at the beginning of the 90s. This pattern of the elasticity of substitution has contributed to the labor …

Persistent link: https://www.econbiz.de/10013317150

That Elusive Elasticity : A Long-Panel Approach to Estimating the Capital-Labor Substitution Elasticity

Chirinko, Robert S.; Fazzari, Steven M.; Meyer, Andrew P. - 2021

The elasticity of substitution between capital and labor features prominently in several areas of economic research …

Persistent link: https://www.econbiz.de/10013319132

Inflation, Factor Substitution and Growth

Klump, Rainer - 2021

Recent empirical studies on the inflation-growth-relationship underline that inflation has negative growth effects already under relatively modest rates. Most contributions to monetary growth theory, however, have difficulties in explaining such a pattern. It is shown in this paper that this...

Persistent link: https://www.econbiz.de/10013319569

Rejecting Capital-Skill Complementarity at All Costs

Frondel, Manuel; Schmidt, Christoph M. - 2021

Any serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification - this is also the approach used by numerous studies analyzing the relative capital-skill...

Persistent link: https://www.econbiz.de/10013320921

Measuring Substitution Patterns with a Flexible Demand Model

Monardo, Julien - 2021

Many empirical studies require estimating how consumers substitute across differentiated products. Examples can be found in a wide range of fields of economics, including environmental economics, health care economics, industrial organization, and international trade. In this paper, I propose a...

Persistent link: https://www.econbiz.de/10013321820

Elasticity of substitution between electricity and non-electric energy in the context of carbon neutrality in China

Feng, Shenghao; Zhang, Keyu; Peng, Xiujian - 2021

Persistent link: https://www.econbiz.de/10013201832