[sigma]: The long and short of it
Research on the elasticity of substitution between capital and labor - [sigma] - has been proceeding for 75 years. While there is clearly a strong case for the importance of [sigma] in the analysis of growth and other economic issues, much less agreement exists on the value of [sigma]. This paper offers some perspectives on prior estimates of [sigma], emphasizing the fundamental tension between the short-run data that are available and the long-run parameter that is required. Estimates of [sigma] based on various short-run and long-run models are discussed and, while the estimates range widely, the weight of the evidence suggests a value of [sigma] in the range of 0.40-0.60. There is little evidence to sustain the assumption of a Cobb-Douglas production function.
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): 30 (2008)
Issue (Month): 2 (June)
Pages: 671-686
| Handle: | RePEc:eee:jmacro:v:30:y:2008:i:2:p:671-686 |
| Contact details of provider: | Web page: http://www.elsevier.com/locate/inca/622617
|
No references listed on IDEAS
You can help add them by filling out this form.
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.
When requesting a correction, please mention this item's handle: RePEc:eee:jmacro:v:30:y:2008:i:2:p:671-686. 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: (Shamier, Wendy)
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.