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Differential Elasticity of Substitution in the Indian Industries

Mulakala Upender and M. Sujan ()
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M. Sujan: Department of Civil Engineering, University College of Engineering, Osmania University, Hyderabad

Journal for Economic Forecasting, 2009, vol. 6, issue 3, 47-55

Abstract: The paper specifically focuses on the impact of reforms to see whether there has been any shift in the differential elasticity of substitution between labour and capital in Indian industry. The main conclusion of the paper is that there are differential elasticities of substitution between labour and capital, both pre and post economic reform period in India, hence substitution possibilities are relatively skewed in favour of labour during post economic reform in the Indian industry.

Keywords: CES Production Function; Differential Elasticity; Economic Reforms (search for similar items in EconPapers)
JEL-codes: C32 E23 J24 J3 Q48 (search for similar items in EconPapers)
Date: 2009
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Handle: RePEc:rjr:romjef:v:6:y:2009:i:3:p:47-55