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A Dual Elasticity of Substitution Production Function with an Application to Cross Country Inequality

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Author Info
Juergen Antony
Abstract

This paper develops a production function which two separate elasticities of substitution between two input factors. One of these elasticities is obtained if the factor intensity equals a particular baseline value. The second part of the paper gives an economic application and shows the theoretical properties of this production function regarding the development of relative capital intensities and relative production per efficiency unit of labor. Inequality across countries widens in transition to the steady state. Panel data on the development of these relative figures seem to support the implications of the above production function.

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File URL: http://www.bgpe.de/texte/DP/031_antony.pdf
File Format: application/pdf
File Function: First version, 2007
Download Restriction: no

Publisher Info
Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 031.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 10 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:bav:wpaper:031_antony

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Web page: http://www.bgpe.de/
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Related research
Keywords: Capital and labor substitution cross country inequality

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production

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