Fueling the US Economy: Energy as a Production Factor from the Great Depression until Today

Julius Frieling () and Reinhard Madlener

No 2/2017, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: We analyze the relationship between factor augmenting technical change and factor substitution through a nested CES function using capital, labor, and energy inputs. We use US aggregate data on output, factor use, and factor prices for the years 1929–2015 to show the interdependence and coevolution of the different input factors. We demonstrate the robustness of the system of equations approach for estimating such a production function. We find that the input factors are gross complements, and that in the time period considered, technical change was mostly labor saving, while the linear time trend of energy augmenting technical change was zero.

Keywords: aggregate production; technical change; multi-factor production; energy demand (search for similar items in EconPapers)
JEL-codes: C13 C32 E23 O33 Q43 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017-05
New Economics Papers: this item is included in nep-eff, nep-ene, nep-his and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaaxmemi Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaaxmemi [301 Moved Permanently]--> https://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaaxmemi)

Related works:
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:ris:fcnwpa:2017_002

Access Statistics for this paper

More papers in FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN) Contact information at EDIRC.
Bibliographic data for series maintained by Hendrik Schmitz ().