Klump, R. and McAdam, Peter and Willman, A. (2007) Factor Substitution and Factor Augmenting Technical Progress in the US: A Normalized Supply-Side System Approach. Review of Economics and Statistics, 89 (1). pp. 183-192. ISSN 0034-6535 .
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Using a normalized CES function with factor-augmenting technical progress, we estimate a supply-side system of the U.S. economy from 1953 to 1998. Avoiding potential estimation biases that may have occurred in earlier studies and putting a high emphasis on data consistency, we obtain robust results not only for the aggregate elasticity of substitution but also for the parameters of labor and capital augmenting technical change. We find that the elasticity of substitution is significantly below unity and that technical progress shows an asymmetrical pattern where the growth of laboraugmenting technical progress is exponential, while that of capital is hyperbolic or logarithmic.
|Subjects:||H Social Sciences|
|Divisions:||Faculties > Social Sciences > School of Economics|
|Depositing User:||Francis Green|
|Date Deposited:||24 Jul 2008 11:06|
|Last Modified:||14 Jan 2010 14:35|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/9407 (The current URI for this page, for reference purposes)|
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