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- W3125014750 abstract "Despite being critical parameters in many economic fields, the received wisdom, in theoretical and empirical literatures, states that joint identification of the elasticity of capital-labor substitution and technical bias is infeasible. This paper challenges that pessimistic interpretation. Putting the new approach of normalized production functions at the heart of a Monte Carlo analysis we identify the conditions under which identification is feasible and robust. The key result is that the jointly modeling the production function and first-order conditions is superior to single-equation approaches in terms of robustly capturing production and technical parameters, especially when merged with normalization. Our results will have fundamental implications for production-function estimation under non-neutral technical change, for understanding the empirical relevance of normalization and the variability underlying past empirical studies." @default.
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- W3125014750 date "2009-01-01" @default.
- W3125014750 modified "2023-10-12" @default.
- W3125014750 title "Identifying the Elasticity of Substitution with Biased Technical Change" @default.
- W3125014750 doi "https://doi.org/10.2139/ssrn.1318167" @default.
- W3125014750 hasPublicationYear "2009" @default.
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