As shown in the 1930s by Hicks and Robinson the elasticity of substitution (`sigma`) is a key parameter that captures whether capital and labor are gross complements or substitutes. Establishing the magnitude of `sigma` is vital, not only for explaining changes in the distribution of income...

"Manufacturing jobs, once the backbone of the modern US economy, have declined over recent decades, darkening opportunities for middle-class advancement. The same trend has occurred in many countries, from Europe to Japan, China, and South Korea. To return manufacturing employment to its former...