EconPapers    
Economics at your fingertips  
 

The Elasticity of Substitution Between Capital and Labour in the US Economy: A Meta‐Regression Analysis

Michael Knoblach (), Martin Roessler and Patrick Zwerschke

Oxford Bulletin of Economics and Statistics, 2020, vol. 82, issue 1, 62-82

Abstract: Despite extensive research, there is no agreement on the value of the elasticity of substitution between capital and labour at the aggregate or the industrial level. Utilizing 2,419 estimates from 77 studies published between 1961 and 2017, this paper provides the first meta‐regression analysis for the US economy. We show that the heterogeneity in previously reported estimates is driven primarily by modelling decisions for technological dynamics. Throughout the analysis, the hypothesis of a Cobb–Douglas production function is rejected. Based on our meta‐regression sample, we estimate a long‐run meta‐elasticity for the aggregate economy in the range of 0.45–0.87. Most industrial estimates do not deviate significantly from the estimate for the aggregate economy.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/obes.12312

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:obuest:v:82:y:2020:i:1:p:62-82

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0305-9049

Access Statistics for this article

Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple

More articles in Oxford Bulletin of Economics and Statistics from Department of Economics, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-04-27
Handle: RePEc:bla:obuest:v:82:y:2020:i:1:p:62-82