### Is the US aggregate **production function Cobb**-**Douglas**? New **estimates **of the **elasticity **of **substitution**

P Antras - Contributions in Macroeconomics, 2004 - degruyter.com

**...**4

**Estimates**under Hicks Neutral Technologi cal Change In this section, I present

**estimates**of the

**elasticity**of

**substitution**between

**capital**and

**labor**based on both

classical

**regression**analysis and modern time series analysis.

**...**

### [PDF][PDF] **Capital**-**labor substitution **and economic efficiency

KJ Arrow, HB Chenery, BS Minhas, RM Solow - The Review of Economics …, 1961 - JSTOR

**...**2 ) . Geometrically these conditions state that output per unit of

**labor**is an increas- ing

**function**

of the input of

**capital**per unit of

**labor**, convex from

**...**value of A. This way of generating

**production**

**functions**brings to light a connection with the

**elasticity**of

**substitution**which does

**...**

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### An **estimation **of US industry-level **capital**–**labor substitution elasticities**: support for **Cobb**–**Douglas**

EJ Balistreri, CA McDaniel, EV Wong - The North American Journal of …, 2003 - Elsevier

**...**The

**elasticity**of

**substitution**between

**capital**and

**labor**is represented by ß 1 , the coefficient of

interest.

**...**We use the weighted-symmetric test to

**determine**the

**order**of integration for each series

across industries, the

**ratio**of

**capital**to

**labor**inputs, and the corresponding relative

**...**

### [PDF][PDF] **Substitution **among **capital**, **labor**, and natural resource products in American **manufacturing**

DB Humphrey, JR Moroney - The Journal of Political Economy, 1975 - JSTOR

**...**Allen (1938, p. 504) defined the partial

**elasticity**of

**substitution**between inputs i and j by

**...**LYKKJ

The disturbances UL and UK are likely to be correlated, because random deviations from profit

maximization should affect both the markets for

**labor**and

**capital**.

**...**

### [PDF][PDF] A cost **function **approach to the measurement of **elasticities **of factor demand and **elasticities **of **substitution**

HP Binswanger - American Journal of Agricultural Economics, 1974 - JSTOR

**...**If the

**capital**-

**labor**

**ratio**increases, the efficiency gain is

**labor**-saving. This implies that the

**labor**

share declines at a constant factor price

**ratio**.

**...**marginal products the cost

**function**has the same

disadvantage as the

**production**

**function**in

**estimating**

**elasticities**of

**substitution**.

**...**

### [PDF][PDF] Recent **empirical **studies of the **CES **and related **production functions**

M Nerlove - The theory and

**empirical**analysis of**production**, 1967 - nber.org**...**is more than twice its standard error. of

**capital**-

**labor**

**ratio**nearly twice its standard error.

5- '4) Page 10. TABLE 2 Intercountry

**Estimates**of the

**Elasticity**of

**Substitution**for Two-Digit

**Manufacturing**Industry, Murata-Arrow Industry Data for 1953-56:

**...**

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### Corporate taxation, **capital **formation, and the **substitution elasticity **between **labor **and **capital**

RS Chirinko - National Tax Journal, 2002 - JSTOR

**...**If

**production**is represented by a

**Constant**

**Elasticity**

**Of**

**Substitution**specification, then the price

**elasticity**is identical to the

**substitution**

**elasticity**between

**labor**and

**capital**, which is represented

as a parameter, a9 The third section

**...**and

**substitution**

**elasticities**are equal. 342

**...**

### [PDF][PDF] An intercountry translog model of energy **substitution **responses

JM Griffin, PR Gregory - The American Economic Review, 1976 - JSTOR

**...**The

**manufacturing**energy,

**labor**, and

**capital**cost shares'(valued at factor cost) were derived

from United

**...**was taken to include all wage and salary supplements to avoid overestimat- ing

**capital**

costs

**...**Thus we report in Tables 2 and 3 below the

**elasticities**of

**substitution**and price

**...**

### [PDF][PDF] A two-level **constant**-**elasticity**-**of**-**substitution production function**

K Sato - The Review of Economic Studies, 1967 - JSTOR

**...**ai represents the

**elasticity**of

**substitution**between

**capital**-in-general and

**labour**-in-general.

**...**

When prices of

**capital**and of

**labour**are given, entrepreneurs would

**determine**the optimum

combination of

**capital**and

**labour**to

**produce**a given level of output.

**...**

### [HTML][HTML] A cross-country **estimation **of the **elasticity **of **substitution **between **labor **and **capital **in **manufacturing **industries

S Claro - Cuadernos de economía, 2003 - SciELO Chile

**...**Corbo, V and P. Meller (1982), "The

**Substitution**of

**Labor**, Skill and

**Capital**: Its Implications for

**...**

4 Taking logarithm from the

**first**

**order**condition with respect to

**labor**(equation (2)) we get

**...**He

concludes that there is little evidence of variable

**elasticity**of

**substitution**(s as

**function**of

**...**

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### Factor **substitution **and factor-augmenting technical progress in the United States: a normalized supply-side system approach

R Klump, P McAdam, A Willman - The Review of Economics and …, 2007 - MIT Press

**...**8 Identification becomes easier, if factor income shares as well as the

**capital**-output

**ratio**are

nonstationary, because in that case the

**estimation**of the

**elasticity**of

**substitution**depends on

the

**...**Page 5.

**production**

**function**is

**CES**with

**labor**-augmenting technical change.

**...**

### The dynamic demand for **capital **and **labor**

MD Shapiro - 1986 - nber.org

**...**I also present alternative

**estimates**with a

**constant**

**elasticity**

**of**

**substitution**

**production**

**function**.

The Cobb-Douglass

**function**has the advantage of simplicity so

**...**Summing these gives (4) total

**labor**cost 2 L N W

**...**6 data. The expression for the price of

**capital**is given in equation (5).

**...**

**Capital**-skill complementarity and inequality: A macroeconomic analysis

P Krusell, LE Ohanian, JV Ríos-Rull… - Econometrica, 2000 - Wiley Online Library

**...**However, if -0, so that the

**substitution**

**elasticity**is less than one, a relative improvement in the

**...**

the equation are the

**ratio**of

**labor**income to the sum of

**labor**and

**capital**Ž .

**...**unskilled workers,

also follows from the firm's profit-maximizing decision in hiring skilled and unskilled

**labor**.

**...**

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### Explaining movements in the **labor **share

S Bentolila, G Saint-Paul - Contributions in Macroeconomics, 2003 - degruyter.com

**...**YY (q/p)M, and the SK curve is now a relationship between esL, the share of

**labor**in value added

given by esL wL/(p˜Y), and ˜k K/eY, the

**capital**-value added

**...**of ˜ k but also of q/p. Let us examine

the implications of this extension for both the

**elasticity**of

**substitution**and the

**...**

**Production functions **for climate policy modeling: An **empirical **analysis

E Van der Werf - Energy Economics, 2008 - Elsevier

**...**(1) we have a nested

**CES**

**function**where inputs

**capital**K and

**labour**L are

**...**rate of the

energy-output

**ratio**e - q from the (negative of the) growth rate of their relative price p Q - p E ,

the

**substitution**possibilities s

**...**(7), which gives us the growth rate of the share of

**capital**costs in

**...**

### That elusive **elasticity**: a long-panel approach to **estimating **the **capital**-**labor substitution elasticity**

RS Chirinko, SM Fazzari, AP Meyer - 2004 - papers.ssrn.com

**...**with the seminal analysis of Harberger (1959, 1962), the

**substitution**

**elasticity**between

**capital**

and

**labor**, equivalent to

**...**series) is the product of the spectrum of the input series (eg, the

**capital**/output

**ratio**

**...**When the

**elasticity**of

**substitution**is unity, ? equals zero, and uft vanishes (

**...**

### [PDF][PDF] **Production functions **with variable **elasticity **of factor **substitution**: some analysis and testing

R Sato, RF Hoffman - The Review of Economics and Statistics, 1968 - JSTOR

**...**

**Function**(where c- = a + bk) The

**production**

**function**(9) is based on the linear

**elasticity**of factor

**substitution**

**function**C = a

**...**data for Y and K, but not for r or w. But we do have time series data

for

**capital's**share, denoted as a, and we deduce the series for

**labor's**share as

**...**

### [PDF][PDF] Sectoral **Elasticities **of **Substitution **Between **Capital **and **Labor **in a Developing Economy: Times Series Analysis in the Case of Postwar Chile

JR Behrman - Econometrica: Journal of the

**Econometric**Society, 1972 - JSTOR**...**may be a statistical fiction related to the relatively low

**estimate**of the

**elasticity**of

**substitution**

between

**capital**and

**labor**

**...**of increasing speed of adjustment) are government, housing services,

**manufacturing**, construction, agriculture, and transportation (if

**labor**is the

**...**

### A new approach to **estimating production function **parameters: the elusive **capital**–**labor substitution elasticity**

RS Chirinko, SM Fazzari… - Journal of Business & …, 2011 - amstat.tandfonline.com

**...**In the

**CES**technology (2), biased technical change is represented by temporal variation in ?

**...**reject

the hypothesis that s is 1, the value implied by the

**Cobb**–

**Douglas**

**production**

**function**and often

**...**

Chirinko, Fazzari, and Meyer: The Elusive

**Capital**–

**Labor**

**Substitution**

**Elasticity**

**...**

### s: The long and short of it

RS Chirinko - Journal of Macroeconomics, 2008 - Elsevier

**...**? l y - s uc l t * + v t l y ,. where ky t * = ln ( ( K / Y ) t * ) , ? ky = s ln ( ? ) , s is the

**substitution**

**elasticity**, ucc t * = ln ( ( P k / P Y ) t * ) , (the Jorgensonian user cost of

**capital**), v t

**...**ln ( ( L / Y )

t * ) , ? l y = s ln ( 1 - ? ) ,uc l t * = ln ( ( P L / P Y ) t * ) (the user cost of

**labor**or the

**...**