EconPapers    
Economics at your fingertips  
 

Are factor biases and substitution identifiable? The Canadian evidence

Kenneth Stewart () and Jiang Li ()

Canadian Journal of Economics, 2018, vol. 51, issue 2, 528-548

Abstract: Revised productivity accounts recently released by Statistics Canada are used to estimate a KlumpMcAdamWillman (KMW) normalized CES supply-side system for the half-century 19612012. The model permits distinct rates of factor-augmenting technical change for capital and labour that distinguish between short-term versus long-term effects, as well as a non-unitary elasticity of substitution and time-varying factor shares. The advantage of the Canadian data for this purpose is that they provide a unified treatment of measurement issues that have had to be improvised in the US and European data used by previous researchers. In contrast to previous results, we find that an elasticity of substitution and distinct factor biases of technological progress are not well determined by the model. For the Canadian data, the KMW model does not appear to provide a framework that overcomes the classic DiamondMcFaddenRodriguez non-identification result. That impossibility theorem is manifested in our findings, not overcome by them.

JEL-codes: C51 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/caje.12330 (text/html)
access restricted to subscribers

Related works:
Journal Article: Are factor biases and substitution identifiable? The Canadian evidence (2018) Downloads
Working Paper: Are factor biases and substitution identifiable? The Canadian evidence (2018) Downloads
Working Paper: Factor substitution, factor-augmenting technical progress, and trending factor shares: the Canadian evidence (2014) Downloads
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:cje:issued:v:51:y:2018:i:2:p:528-548

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2021-05-01
Handle: RePEc:cje:issued:v:51:y:2018:i:2:p:528-548