A Cross-Country Estimation of the Elasticity of Substitution between Labor and Capital in Manufacturing Industries
This paper presents a simple methodology to estimate the elasticity of substitution between labor and capital for firms operating in perfectly competitive factor markets with constant-elasticity-of-substitution technologies. It is applied to a cross-count
Volume (Year): 40 (2003)
Issue (Month): 120 ()
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- Berndt, Ernst R & Christensen, Laurits R, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution and Aggregation," Review of Economic Studies, Wiley Blackwell, vol. 40(3), pages 403-10, July.
- Vittorio Corbo & Patricio Meller, 1982. "The Substitution of Labor, Skill, and Capital: Its Implications for Trade and Employment," NBER Chapters, in: Trade and Employment in Developing Countries, Volume 2: Factor Supply and Substitution, pages 193-214 National Bureau of Economic Research, Inc.
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