A Dual Elasticity of Substitution Production Function with an Application to Cross Country Inequality

Jürgen Antony

No 294, Discussion Paper Series from Universitaet Augsburg, Institute for Economics

Abstract: This paper develops a production function which two separate elasticities of substitution between two input factors. One of these elasticities is obtained if the factor intensity equals a particular baseline value. The second part of the paper gives an economic application and shows the theoretical properties of this production function regarding the development of relative capital intensities and relative production per efficiency unit of labor. Inequality across countries widens in transition to the steady state. Panel data on the development of these relative figures seem to support the implications of the above production function.

Keywords: capital and labor substitution; cross country inequality (search for similar items in EconPapers)
JEL-codes: E23 O11 O33 (search for similar items in EconPapers)
Date: 2007-08
New Economics Papers: this item is included in nep-dev and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://opus.bibliothek.uni-augsburg.de/opus4/files/71141/294.pdf (application/pdf)

Related works:
Journal Article: A dual elasticity of substitution production function with an application to cross-country inequality (2009)
Working Paper: A Dual Elasticity of Substitution Production Function with an Application to Cross Country Inequality (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:aug:augsbe:0294

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