Replication data for: Identifying the Elasticity of Substitution with Biased Technical Change
Principal Investigator(s): View help for Principal Investigator(s) Miguel A. León-Ledesma; Peter McAdam; Alpo Willman
Version: View help for Version V1
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LICENSE.txt | text/plain | 14.6 KB | 10/11/2019 10:54:AM |
Project Citation:
León-Ledesma, Miguel A., McAdam, Peter, and Willman, Alpo. Replication data for: Identifying the Elasticity of Substitution with Biased Technical Change. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112363V1
Project Description
Summary:
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The capital-labor substitution elasticity and technical biases in production are critical parameters. The received wisdom claims their joint identification is infeasible. We challenge that interpretation. Putting the new approach of "normalized"
production functions at the heart of a Monte Carlo analysis we identify the conditions under which identification is feasible and robust. The key result is that jointly modeling the production function and first-order conditions is superior to single-equation approaches especially when merged with "normalization." Our results will have fundamental implications for production-function estimation under non-neutral technical change, for understanding the empirical relevance of normalization and variability underlying past empirical studies. (JEL E22, O33, O41)
Scope of Project
Subject Terms:
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Capital-Labor substitution;
monte carlo evidence;
biased technichal change
JEL Classification:
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E22 Investment; Capital; Intangible Capital; Capacity
O33 Technological Change: Choices and Consequences; Diffusion Processes
O41 One, Two, and Multisector Growth Models
E22 Investment; Capital; Intangible Capital; Capacity
O33 Technological Change: Choices and Consequences; Diffusion Processes
O41 One, Two, and Multisector Growth Models
Data Type(s):
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program source code
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