Structural Change of Factor Substitution in Finnish Manufacturing
AbstractThe possibility of structural change in Finnish factor substitution relations between energy and nonenergy factors is analyzed. The standard generalized Leontief KLEMF cost functions is modified so that the substitution parameters related to electricity and fuel factors may shift to new levels over time. The initial point of transition is 1974, during which the first energy crises took place. Likelihood ratio tests confirm that there has indeed been a statistically significant change in energy versus nonenergy substitution. The authors' estimates imply stronger substitutability for most input pairs after the energy crisis. Copyright 1989 by The editors of the Scandinavian Journal of Economics.
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 The Research Institute of the Finnish Economy in its series Discussion Papers with number 281.
Length: 22 pages
Date of creation: 09 Jan 1989
Date of revision:
Other versions of this item:
- Ilmakunnas, Pekka & Torma, Hannu, 1989. " Structural Change in Factor Substitution in Finnish Manufacturing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(4), pages 705-21.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mark J. Koetse & Henri L.F. de Groot & Raymond J.G.M. Florax, 2006. "Capital-Energy Substitution and Shifts in Factor Demand: A Meta-Analysis," Tinbergen Institute Discussion Papers 06-061/3, Tinbergen Institute.
- Lijesen, Mark G., 2007. "The real-time price elasticity of electricity," Energy Economics, Elsevier, vol. 29(2), pages 249-258, March.
- Galetovic, Alexander & Muñoz, Cristián M., 2011. "Regulated electricity retailing in Chile," Energy Policy, Elsevier, vol. 39(10), pages 6453-6465, October.
- Ruud A. de Mooij & A. Lans Bovenberg, .
"Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting,"
EPRU Working Paper Series
95-14, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Ruud de Mooij & A. Bovenberg, 1998. "Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting," International Tax and Public Finance, Springer, vol. 5(1), pages 7-39, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kaija Hyvönen-Rajecki).
If references are entirely missing, you can add them using this form.