The Existence of Factor Substitution in the Primary Aluminum Industry: A Multivariate Error-Correction Approach Using Norwegian Panel Data
AbstractThis paper presents an econometric analysis of factor demands in the Norwegian primary aluminium industry using annual plant-level panel data. The translog cost function approach is applied, and a multivariate error-correction model of the cost shares of labour, raw materials and electricity is estimated. Capital is assumed to be quasi-fixed. The hypothesis of fixed input coefficients is rejected for this industry, but the estimated own-price and cross-price elasticities suggest that relative price variations have limited effect on conditional factor demands.
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Bibliographic InfoArticle provided by Springer in its journal Empirical Economics.
Volume (Year): 20 (1995)
Issue (Month): 3 ()
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- Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014.
"The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis,"
IZA Discussion Papers
7958, Institute for the Study of Labor (IZA).
- Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The own-wage elasticity of labor demand: A meta-regression analysis," ZEW Discussion Papers 14-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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