This paper estimates production functions with factor interaction for annual US output from 1949 to 2013 including energy Btu input with capital and labor. Interactions between the three factors are parsimoniously introduced to the error correction estimates. The findings are as follows: Fixed...

Using ordinary calculus techniques, we investigate the conditions under which LeChatelier effects are signable for finite changes in parameter values. We show, for example, that the short run demand for a factor is always less responsive to price changes than the long run demand, provided that...