Empirical Estimation of the Elasticity of Substitution : A Review
AbstractThis review of time series and cross-sectional studies indicates that there is little agreement as to the "true" value of the elasticity of substitution. There appears to be no clear-cut explanation for the diversity of the estimates. Not only do the various studies attribute widely different absolute levels to the elasticity of substitution in the industries considered, but there is also no apparent consistency between the ordinal rankings of the industries within each study. There is however a general pattern of differences between the cross-sectional and time series estimates -- namely, the former are usually larger (averaging about 1) than the latter (averaging perhaps about 0.5). Please note: The PDF download of this fairly old paper is an optical scan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number op-09.
Date of creation: Nov 1976
Date of revision:
Capital; labour; elasticity of substitution;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fullerton, Don & Metcalf, Gilbert E., 2002.
"Cap and trade policies in the presence of monopoly and distortionary taxation,"
Resource and Energy Economics,
Elsevier, vol. 24(4), pages 327-347, November.
- Don Fullerton & Gilbert E. Metcalf, 2000. "Cap and Trade Policies in the Presence of Monopoly and Distortionary Taxation," Discussion Papers Series, Department of Economics, Tufts University 0015, Department of Economics, Tufts University.
- Don Fullerton & Gilbert E. Metcalf, 2002. "Cap and Trade Policies in the Presence of Monopoly and Distortionary Taxation," NBER Working Papers 8901, National Bureau of Economic Research, Inc.
- de Melo, Jaime & Stanton, Julie & Tarr, David, 1989.
"Revenue-raising taxes: General equilibrium evaluation of alternative taxation in U.S. petroleum industries,"
Journal of Policy Modeling,
Elsevier, vol. 11(3), pages 425-449.
- de Melo, Jaime & Stanton, Julie & Tarr, David, 1989. "Revenue raising taxes : general equilibrium evaluation of alternative taxation in U.S. petroleum industries," Policy Research Working Paper Series 145, The World Bank.
- Bakoup, Ferdinand & Tarr, David, 1998. "How integration into the Central African Economic and Monetary Community affects Cameroon's economy: general equilibrium estimates," Policy Research Working Paper Series 1872, The World Bank.
- Don Fullerton & Gilbert Metcalf, 1997.
"Environmental Controls, Scarcity Rents, and Pre-Existing Distortions,"
NBER Working Papers
6091, National Bureau of Economic Research, Inc.
- Fullerton, Don & Metcalf, Gilbert E., 2001. "Environmental controls, scarcity rents, and pre-existing distortions," Journal of Public Economics, Elsevier, vol. 80(2), pages 249-267, May.
- Don Fullerton & Gilbert E. Metcalf, 1997. "Environmental Controls, Scarcity Rents, and Pre-Existing Distortions," Discussion Papers Series, Department of Economics, Tufts University 9703, Department of Economics, Tufts University.
- Adams, Philip D., 1987. "Agricultural Supply Response in ORANI," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(03), December.
- Sherony, Keith R. & Knowles, Glenn J. & Boyd, Roy, 1991. "The Economic Impact Of Crop Losses: A Computable General Equilibrium Approach," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
- Jean Lim & Carolina Rodríguez-Zamora, 2010. "The Optimal Tax Rule in the Presence of Time Use," Working Papers 2010-05, Banco de México.
- Rod Tyers & Yongzheng Yang, 1997. "Trade with Asia and skill upgrading: Effects on labor markets in the older industrial countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 383-418, September.
- Lawrence H. Goulder & John B. Shoven & John Whalley, 1982. "Domestic Tax Policy and the Foreign Sector: The Importance of Alternative Foreign Sector Formulations to Results from a General Equilibrium," NBER Working Papers 0919, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge).
If references are entirely missing, you can add them using this form.