Variable markups and capital-labor substitution

Jiang, Wei and Leon-Ledesma, Miguel A. (2018) Variable markups and capital-labor substitution. Economics Letters, 171 (2018). pp. 34-36. ISSN 0165-1765. (doi:https://doi.org/10.1016/j.econlet.2018.07.011) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided)

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Abstract

We provide new estimates of the elasticity of capital-labor substitution (?) and the bias in technical change allowing price markups to change over time as shown in De Loecker and Eeckhout (2017). Our estimate of ? is in the region of 0.8 and technical change is net capital-augmenting.

Item Type: Article
Uncontrolled keywords: capital-labor substitution, price mark-ups, biased technical change
Subjects: H Social Sciences
H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Miguel Leon-Ledesma
Date Deposited: 06 Jul 2018 13:57 UTC
Last Modified: 28 Mar 2019 09:07 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/67569 (The current URI for this page, for reference purposes)
Jiang, Wei: https://orcid.org/0000-0003-2957-3665
Leon-Ledesma, Miguel A.: https://orcid.org/0000-0002-3558-2990
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