Economics at your fingertips  

Wages in a factor proportions model with energy input

Hyeongwoo Kim () and Henry Thompson ()

Economic Modelling, 2014, vol. 36, issue C, 495-501

Abstract: This paper examines US wage adjustment in a structural vector autoregression of the factor proportions model with capital, labor, and energy inputs. Data cover the years 1949 to 2006. The wage adjusts to changes in input levels and output prices over six to eight years. Energy has a more robust wage impact than capital. The wage reacts weakly if at all to the falling price of manufactures and rising price of services during the sample period. Estimates relate directly to factor proportions theory suggesting robust substitution with labor in the middle of the factor intensity ranking.

Keywords: Wages; Energy; Factor proportions model; Vector autoregression (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Wages in a Factor Proportions Model with Energy Input (2012) 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:

DOI: 10.1016/j.econmod.2013.10.021

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-07-30
Handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:495-501