A Non-parametric Examination of Capital-Skill Complementarity
This paper uses non-parametric kernel methods to construct observation-specific elasticities of substitution for a balanced panel of 73 developed and developing countries to examine the capital-skill complementarity hypothesis. The exercise shows some support for capital-skill complementarity, but the strength of the evidence depends upon the definition of skilled labour and the elasticity of substitution measure being used. The added flexibility of the non-parametric procedure is also capable of uncover ing that the elasticities of substitution vary across countries, groups of countries and time periods. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2009.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 71 (2009)
Issue (Month): 4 (08)
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0305-9049|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel J. Henderson & Subal C. Kumbhakar, 2006. "Public and Private Capital Productivity Puzzle: A Nonparametric Approach," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 219–232, July.
- Robert J. Barro & Jong-Wha Lee, 2000.
"International Data on Educational Attainment: Updates and Implications,"
CID Working Papers
42, Center for International Development at Harvard University.
- Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Pagan,Adrian & Ullah,Aman, 1999.
Cambridge University Press, number 9780521355643, june. pag.
- Chris Papageorgiou & Viera Chmelarova, 2005.
"Nonlinearities in Capital–Skill Complementarity,"
Journal of Economic Growth,
Springer, vol. 10(1), pages 55-86, 01.
- Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
- Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-88, September.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, june. pag.
- Hsiao, Cheng & Li, Qi & Racine, Jeffrey S., 2007.
"A consistent model specification test with mixed discrete and continuous data,"
Journal of Econometrics,
Elsevier, vol. 140(2), pages 802-826, October.
- Cheng Hsiao & Qi Li & Jeff Racine, 2006. "A Consistent Model Specification Test with Mixed Discrete and Continuous Data," IEPR Working Papers 06.47, Institute of Economic Policy Research (IEPR).
- Ullah, Aman, 1988. "Nonparametric Estimation and Hypothesis Testing in Econometric Models," Empirical Economics, Springer, vol. 13(3/4), pages 223-49.
- KNEIP, Alois & SIMAR, Léopold, 1995.
"A General Framework for Frontier Estimation with Panel Data,"
CORE Discussion Papers
1995060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kneip, A. & Simar, L., . "A general framework for frontier estimation with panel data," CORE Discussion Papers RP 1224, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gad Allon & Michael Beenstock & Steven Hackman & Ury Passy & Alex Shapiro, 2005.
"Nonparametric estimation of concave production technologies by entropic methods,"
- Gad Allon & Michael Beenstock & Steven Hackman & Ury Passy & Alexander Shapiro, 2007. "Nonparametric estimation of concave production technologies by entropic methods," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 795-816.
- Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
- Chris Papageorgiou & John Duffy & Fidel Perez-Sebastian, .
"Capital-Skill complementarity? Evidence from a Panel of Countries,"
Departmental Working Papers
2003-12, Department of Economics, Louisiana State University.
- John Duffy & Chris Papageorgiou & Fidel Perez-Sebastian, 2004. "Capital-Skill Complementarity? Evidence from a Panel of Countries," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 327-344, February.
- Chris Papageorgiou & Fidel Pérez Sebastián & John Duffy, 2002. "Capital-Skill Complementarity? Evidence From A Panel Of Countries," Working Papers. Serie AD 2002-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Claudia Goldin & Lawrence F. Katz, 1998.
"The Origins of Technology-Skill Complementarity,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 113(3), pages 693-732.
- Fallon, P R & Layard, P R G, 1975. "Capital-Skill Complementarity, Income Distribution, and Output Accounting," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 279-301, April.
- Olivier de La Grandville & Rainer Klump, 2000. "Economic Growth and the Elasticity of Substitution: Two Theorems and Some Suggestions," American Economic Review, American Economic Association, vol. 90(1), pages 282-291, March.
- Jonathan R. W. Temple, 1998. "Robustness tests of the augmented Solow model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(4), pages 361-375.
- Paul Thompson & Keith Moore & William Rivera & Gary Green & Joel Schor & Richard Ryan & Jeffery Bentley & Bernard Ouden & William Browne, 1989.
Agriculture and Human Values,
Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 6(4), pages 62-80, September.
- B. Ripley & Philippa Pattison & Paul Thompson & Jan Leeuw & Ludovic Lebart & Brian Everitt & Roderick McDonald & Jeffrey Banfield & Richard Hathaway, 1990. "Book reviews," Journal of Classification, Springer;The Classification Society, vol. 7(2), pages 287-316, September.
- Paul Thompson, 2008. "Book review," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(1), pages 137-138, January.
- Roger Paden & Marilyn Holly & Paul Thompson & Carl Mitcham & Joel Schor & Nicholas Ellig & John Lyon & Carl Barfield & Clyde Kiker & Jeffrey Burkhardt & Miguel Altieri & Christopher Vecsey, 1986. "Book reviews," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 3(3), pages 41-80, June.
- Arthur Lewbel & Oliver Linton, 2003.
"Nonparametric Matching and Efficient Estimators of Homothetically Separable Functions,"
Boston College Working Papers in Economics
585, Boston College Department of Economics, revised 04 Sep 2006.
- Arthur Lewbel & Oliver Linton, 2007. "Nonparametric Matching and Efficient Estimators of Homothetically Separable Functions," Econometrica, Econometric Society, vol. 75(4), pages 1209-1227, 07.
- Abadie A., 2002. "Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 284-292, March.
- Thompson, Peter & Taylor, Timothy G, 1995. "The Capital-Energy Substitutability Debate: A New Look," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 565-69, August.
- Dennis Epple & Brett Gordon & Holger Sieg, 2010. "A New Approach to Estimating the Production Function for Housing," American Economic Review, American Economic Association, vol. 100(3), pages 905-24, June.
- Maasoumi, Esfandiar & Racine, Jeff, 2006.
"Growth And Convergence: A Profile Of Distribution Dynamics And Mobility,"
Departmental Working Papers
0605, Southern Methodist University, Department of Economics.
- Maasoumi, Esfandiar & Racine, Jeff & Stengos, Thanasis, 2007. "Growth and convergence: A profile of distribution dynamics and mobility," Journal of Econometrics, Elsevier, vol. 136(2), pages 483-508, February.
- Charles Blackorby & R. Robert Russell, 1981. "The Morishima Elasticity of Substitution; Symmetry, Constancy, Separability, and its Relationship to the Hicks and Allen Elasticities," Review of Economic Studies, Oxford University Press, vol. 48(1), pages 147-158.
- Kumbhakar, Subal C. & Park, Byeong U. & Simar, Leopold & Tsionas, Efthymios G., 2007. "Nonparametric stochastic frontiers: A local maximum likelihood approach," Journal of Econometrics, Elsevier, vol. 137(1), pages 1-27, March.
- Thursby, Jerry G & Lovell, C A Knox, 1978. "An Investigation of the Kmenta Approximation to the CES Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 363-77, June.
- Bergstrom, Villy & Panas, Epaminondas E, 1992. "How Robust Is the Capital-Skill Complementarity Hypothesis?," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 540-46, August.
- Peter Hall & Qi Li & Jeffrey S. Racine, 2007. "Nonparametric Estimation of Regression Functions in the Presence of Irrelevant Regressors," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 784-789, November.
When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:71:y:2009:i:4:p:519-538. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.