 Panel estimation of sectoral substitution elasticities for CES production functionsNo 10160, EcoMod2017 from EcoMod Abstract: This paper provides a broad range of econometric estimates of substitution elasticities for 35 sectoral nested CES production functions. Although the related empirical literature has been growing over the recent years, there is still no single study focused on a large-scale estimation of various sectoral elasticities with a use of a common database and methodology. This paper constitutes an attempt to fill this gap. Panel data techniques, with the World Input-Output Database (WIOD) as the main data source. Estimation results suggest a significant heterogeneity in elasticity values between various activity sectors, as well as between various nests of production function. It also turns out that, in most cases, obtained long-run elasticities are higher than in the short run, as well as significantly different from zero (Leontief specification) and unity (Cobb-Douglas specification). In addition, time series properties of panel data (stationarity and cointegration) play a crucial role in determining the type of dynamic model (autoregressive distributed lag model, error correction model or model for differenced series) to be estimated for a particular nest-sector combination and, in turn, in determining the obtained values of elasticity estimates. Keywords: EU + non-EU developed countries; Macroeconometric modeling; General equilibrium modeling (CGE) (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ekd:010027:10160 Access Statistics for this paper More papers in EcoMod2017 from EcoMod Contact information at EDIRC. |
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