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- W2892448164 abstract "We study a business cycle with a Translog production function. We empirically identify a complementarity between labor and energy that leads to returns to scale, which is not compatible with the tightly parameterized production functions commonly used in the literature (Cobb-Douglas and CES). We—therefore—propose a flexible Translog production function that not only features complementarity-induced procyclical returns to scale but is also consistent with a balanced growth path. A simple calibrated business cycle model with the proposed production function generates strikingly data-consistent dynamics following demand shocks without relying on either nominal rigidities or countercyclical markups." @default.
- W2892448164 created "2018-10-05" @default.
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- W2892448164 date "2018-01-01" @default.
- W2892448164 modified "2023-09-23" @default.
- W2892448164 title "Business Cycles with Input Complementarity" @default.
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- W2892448164 doi "https://doi.org/10.2139/ssrn.3184050" @default.
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