Specification Error in the Estimation of the Elasticity of Substitution between Capital and Land in residential Construction
Previous estimates of the elasticity of substitution between capital and land ignore the role of labor and financing in the production function for housing. In the case of cross-section data between cities, time-series data, or pooled cross-section and time series data, the exclusion of one or both variables may lead to specification error. This study tests the hypothesis that the exclusion of these variables does not bias the estimate of the elasticity of substitution between capital and land. The methodology employs data for U.S. cities from 1973 to 1982 to estimate translog cost functions. Exclusion of financing biases the elasticity estimate upward.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 24 (1990)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://link.springer.com/journal/168|
When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:24:y:1990:i:2:p:125-32. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.