IDEAS home Printed from https://ideas.repec.org/a/red/issued/25-246.html

On the elasticity of substitution between labor and ICT and IP capital and traditional capital

Author

Listed:
  • Vahagn Jerbashian

    (University of Barcelona)

Abstract

I estimate a nested CES production function for a panel of European countries, distinguishing between information and communication technologies (ICT), intellectual property (IP) capital, and traditional capital. I allow for differences in the elasticities of substitution between labor, an aggregate of ICT and IP capital, and traditional capital. Results indicate that ICT and IP together are gross substitutes for labor, whereas traditional capital is a gross complement. Rapid technological progress and capital accumulation in ICT and IP capital largely explain the decline in labor income share. The imputed labor-aggregate capital elasticity of substitution is below 1 but increases over time. (Copyright: Elsevier)

Suggested Citation

  • Vahagn Jerbashian, 2026. "On the elasticity of substitution between labor and ICT and IP capital and traditional capital," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 60, April.
    • Handle: RePEc:red:issued:25-246
    DOI: 10.1016/j.red.2026.101332
    as

    Download full text from publisher

    File URL: https://dx.doi.org/10.1016/j.red.2026.101332
    Download Restriction: Access to full texts is restricted to ScienceDirect subscribers and institutional members. See https://www.sciencedirect.com/ for details.
    File URL: https://libkey.io/10.1016/j.red.2026.101332?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:issued:25-246. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.