Interaction and Substitution Between Capital, Labor, and Energy in the US Economy
Author | : Cassandra C. Copeland |
Publisher | : |
Total Pages | : 28 |
Release | : 2016 |
ISBN-10 | : OCLC:1305908854 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Interaction and Substitution Between Capital, Labor, and Energy in the US Economy written by Cassandra C. Copeland and published by . This book was released on 2016 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Estimates of price substitution among capital, labor, and energy are critical to numerous policy issues. Estimating factor share equations of the translog production function requires constant returns to scale and competitive factor markets. The present estimates find mixed evidence on these assumptions starting with log linear production and parsimoniously adding interaction terms. Data cover US output from 1949 to 2013 with inputs of fixed capital assets, the labor force, and Btu energy input. Energy interaction and proves critical revealing declining productivity of overpaid labor. Underpaid capital and energy are weak substitutes if at all. Labor has the strongest own price substitution.