Aggregate Production Functions and Neoclassical Properties: An Empirical Verification

Stefano Zambelli

No 1405, ASSRU Discussion Papers from ASSRU - Algorithmic Social Science Research Unit

Abstract: Standard postulates concerning the aggregate production function are about marginal productivities - and the associated demand of labor and capital – which are to be negatively related to factor prices, namely the wage rate and the profit rate. The theoretical cases in which these neoclassical properties do not hold are regarded as anomalies. We compute the aggregate values for capital, production and labour and find that the neoclassical postulates do not hold for the whole dataset under consideration.

Keywords: Aggregate Neoclassical Production Function; Cobb-Douglas; CES; Technological Change; Macroeconomics; Growth. (search for similar items in EconPapers)
JEL-codes: C61 C63 C67 O47 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eff, nep-gro and nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:trn:utwpas:1405

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