Capital-labor substitution and economic efficiency
Citations
2 citations
2 citations
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2 citations
Cites methods from "Capital-labor substitution and econ..."
...After differencing each time series to achieve stationarity and then applying the unit root tests for the first difference I(1), the results indicated that all time series were now stationary....
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...In order to analyze the combined and separate effects of employment creation and destruction on localized productivity growth, this study adopts a Constant Elasticity of Substitution (CES) production function approach, of which a Cobb-Douglas function is a special case (Arrow et al., 1961)....
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2 citations
Cites background or methods from "Capital-labor substitution and econ..."
...The CES production function with the elasticity of factor substitution different from unity built by Arrow et al. (1961) has shown an increasing advantage over the Cobb–Douglas in studying economic growth, in particular, in testing the possibility of endogenous growth of an economy....
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...Based on the neoclassical production theory and previous investigations (Arrow et al., 1961; Lagomarsino, 2017; Thach, 2020c), we put Igamma(0.001, 0.001) prior on the variance parameter (σ20), normal N(0,100) prior on parameter b0, uniform(0,1) prior on parameter δ. Previous studies suggest…...
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...Arrow et al. (1961) eventually formulated the CES....
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References
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