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Constant-Elasticity-Of-Substitution Production Function

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Author Info
Nakamura, Hideki
Nakamura, Masakatsu
Abstract

We consider endogenous changes of inputs from labor to capital in the production of intermediate goods, i.e., a form of mechanization. We derive complementary relationships between capital accumulation and mechanization by assuming a Cobb Douglas production functions when the efficiency of inputs is assumed in a specific form. The difficulty of mechanization represents the elasticity of substitution.

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File URL: http://journals.cambridge.org/abstract_S1365100508070302
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Publisher Info
Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 12 (2008)
Issue (Month): 05 (November)
Pages: 694-701
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Handle: RePEc:cup:macdyn:v:12:y:2008:i:05:p:694-701_07

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