IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/94717.html

Estimation Of Substitution Parameter In Indian Industries: A Disaggregated Approach

Author

Listed:
  • Pohit, Sanjib
  • Chadha, Rajesh
  • Bina, P. L.
  • Sangeeta, N

Abstract

This paper attempts to estimate the elasticity of substitution between labor and capital for Indian industries classified according to 21 three-digit and 2 one-digit ISIC sectors. The paper also tests whether the estimated values of elasticity of substitution between labor and capital for a sector tend to change from one year to another and also whether it is Cobb-Douglas or CES or VES production function that characterizes a particular sector.

Suggested Citation

  • Pohit, Sanjib & Chadha, Rajesh & Bina, P. L. & Sangeeta, N, 1996. "Estimation Of Substitution Parameter In Indian Industries: A Disaggregated Approach," MPRA Paper 94717, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94717
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/94717/1/MPRA_paper_94717.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. S. Clemhout, 1968. "The Class of Homothetic Isoquant Production Functions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(1), pages 91-104.
    2. Kazi, Umar A, 1980. "The Variable Elasticity of Substitution Production Function: A Case Study for Indian Manufacturing Industries," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 163-175, March.
    3. Jora R. Minasian, 1961. "Elasticities of Substitution and Constant-Output Demand Curves for Labor," Journal of Political Economy, University of Chicago Press, vol. 69(3), pages 261-261.
    4. Marc Nerlove, 1967. "Recent Empirical Studies of the CES and Related Production Functions," NBER Chapters, in: The Theory and Empirical Analysis of Production, pages 55-136, National Bureau of Economic Research, Inc.
    5. C. A. Knox Lovell, 1968. "Capacity Utilization and Production Function Estimation in Postwar American Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 219-239.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen Ngoc Thach, 2020. "Macroeconomic Growth in Vietnam Transitioned to Market: An Unrestricted VES Framework," Economies, MDPI, vol. 8(3), pages 1-15, July.
    2. Bellocchi, Alessandro & Travaglini, Giuseppe, 2023. "Can variable elasticity of substitution explain changes in labor shares?," Journal of Macroeconomics, Elsevier, vol. 76(C).
    3. Nguyen Ngoc Thach, 2020. "The Variable Elasticity of Substitution Function and Endogenous Growth: An Empirical Evidence from Vietnam," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 263-277.
    4. Nikolaos Rodousakis, 2014. "The Stability Properties of Goodwin’s Growth Cycle Model with a Variable Elasticity of Substitution Production Function," Studies in Microeconomics, , vol. 2(2), pages 213-223, December.
    5. Paul, Saumik, 2019. "A Decline in Labor's Share with Capital Accumulation and Complementary Factor Inputs: An Application of the Morishima Elasticity of Substitution," IZA Discussion Papers 12219, Institute of Labor Economics (IZA).
    6. Paul R. Blackley, 1986. "Urban-Rural Variations in the Structure of Manufacturing Production," Urban Studies, Urban Studies Journal Limited, vol. 23(6), pages 471-483, December.
    7. Neal E. Duffy, 1988. "Returns to Scale Behavior and Manufacturing Agglomeration Economies in U.S. Urban Areas," The Review of Regional Studies, Southern Regional Science Association, vol. 18(3), pages 47-54, Fall.
    8. Felipe, Jesus & McCombie, J. S. L., 2001. "Biased Technical Change, Growth Accounting, and the Conundrum of the East Asian Miracle," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 542-565, September.
    9. Shoven, John B. & Whalley, John, 1972. "A general equilibrium calculation of the effects of differential taxation of income from capital in the U.S," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 281-321, November.
    10. Marc Nerlove, 1967. "Recent Empirical Studies of the CES and Related Production Functions," NBER Chapters, in: The Theory and Empirical Analysis of Production, pages 55-136, National Bureau of Economic Research, Inc.
    11. Finn E. Kydland & Edward C. Prescott, 1991. "Hours and Employment Variation in Business-Cycle Theory," International Economic Association Series, in: Niels Thygesen & Kumaraswamy Velupillai & Stefano Zambelli (ed.), Business Cycles, chapter 5, pages 107-134, Palgrave Macmillan.
    12. Alessandro Bellocchi & Giovanni Marin & Giuseppe Travaglini, 2021. "The Great Fall of Labor Share:Micro Determinants for EU Countries Over 2011-2019," Working Papers 2102, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2021.
    13. Ryu, Hang Keun, 2011. "Subjective model selection rules versus passive model selection rules," Economic Modelling, Elsevier, vol. 28(1-2), pages 459-472, January.
    14. Sebastian Barnes & Simon Price & Maria Sebastia Barriel, 2008. "The elasticity of substitution: evidence from a UK firm-level data set," Bank of England working papers 348, Bank of England.
    15. Dutta, Saurav K. & Lawson, Raef A. & Marcinko, David J., 2016. "A management control system to support corporate sustainability strategies," Advances in accounting, Elsevier, vol. 32(C), pages 10-17.
    16. Gaude, Jacques., 1974. "Capital-labour substitution possibilities; a review of empirical research. Provisional," ILO Working Papers 991534603402676, International Labour Organization.
    17. Riveros, Luis A., 1989. "International differences in wage and nonwage labor costs," Policy Research Working Paper Series 188, The World Bank.
    18. James J. Heckman & Rodrigo Pinto, 2022. "Causality and Econometrics," NBER Working Papers 29787, National Bureau of Economic Research, Inc.
    19. Heckman, James & Pinto, Rodrigo, 2024. "Econometric causality: The central role of thought experiments," Journal of Econometrics, Elsevier, vol. 243(1).
    20. Paul, Saumik, 2019. "Labor Income Share Dynamics with Variable Elasticity of Substitution," IZA Discussion Papers 12418, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    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:pra:mprapa:94717. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.