Abstract

We collect all available estimates of the elasticity of substitution between capital and labor. Using meta-analysis methods we correct the literature for publication selection bias. We employ Bayesian model averaging to explore the sources of heterogeneity in the estimates of the elasticity of substitution and evaluate the effects of data and method choices on the reported results.

Reference: Sebastian Gechert, Tomas Havranek, Zuzana Irsova, & Ansgar Rannenberg (2017), "The Elasticity of Substitution Between Capital and Labor: A Meta-Analysis." Czech National Bank and Charles University, Prague. Available soon at meta-analysis.cz/sigma.