This is a preview. Log in through your library . Abstract A recent development in microeconomic theory suggests that the size of the elasticity of substitution between factors is relevant to economic ...

This is a preview. Log in through your library . Abstract It is often asserted that the more substitutable capital and labor are in the aggregate production the more rapidly an economy grows. Recently ...

Empirical evidence indicates that the elasticity of capital-labor substitution for the aggregate U.S. economy is below unity. In contrast, the existing indeterminacy literature has mostly restricted ...

We estimate the upper-level elasticity of substitution between goods and services of a nested aggregate CES preference specification. We show how this elasticity can be derived from the long-run ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation Most macroeconomic models assume that aggregate output is generated by a specification for the production function with ...

Existing studies on the downward trend in the labor share of income mostly focus on changes within individual countries. I document, however, that half of the global decline in the labor share of ...

Economists have understated the impact of business investment on wages and demand for labor. Decades of data suggest that wages are twice as responsive to investment as the most commonly used economic ...