Economics at your fingertips  

Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003

Jukka Jalava (), Pohjola Matti (), Antti Ripatti and Jouko Vilmunen
Additional contact information
Pohjola Matti: Helsinki School of Economics

The B.E. Journal of Macroeconomics, 2006, vol. 6, issue 1, 1-20

Abstract: The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered. It is, however, a misleading description of the production technology for the post-WWII period. Controlling for biased technical change, the elasticity of substitution is significantly below one, close to 0.5, during 1945-2003. Given that similar results have been obtained for the U.S. economy, the analysis shows that the value of the elasticity of substitution cannot be dependent on some specific structure of economic institutions but is likely to reflect more general aspects of technology and production.

Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link) (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:

Ordering information: This journal article can be ordered from

DOI: 10.2202/1534-5998.1328

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2024-07-01
Handle: RePEc:bpj:bejmac:v:topics.6:y:2006:i:1:n:8