Structural Change of Factor Substitution in Finnish Manufacturing
The possibility of structural change in Finnish factor substitution relations between energy and nonenergy factors is analyzed. The standard generalized Leontief KLEMF cost functions is modified so that the substitution parameters related to electricity and fuel factors may shift to new levels over time. The initial point of transition is 1974, during which the first energy crises took place. Likelihood ratio tests confirm that there has indeed been a statistically significant change in energy versus nonenergy substitution. The authors' estimates imply stronger substitutability for most input pairs after the energy crisis. Copyright 1989 by The editors of the Scandinavian Journal of Economics.
(This abstract was borrowed from another version of this item.)
|Date of creation:||09 Jan 1989|
|Date of revision:|
|Contact details of provider:|| Postal: Lönnrotinkatu 4 B, FIN-00120 HELSINKI|
Phone: +358 (0)9 609 900
Fax: +358 (0)9 601 753
Web page: http://www.etla.fi/
More information through EDIRC
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:rif:dpaper:281. 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: (Kaija Hyvönen-Rajecki)
If references are entirely missing, you can add them using this form.