Jürgen Antony
A Dual Elasticity of Substitution Production
Function with an Application to Cross Country Inequality
Abstract:
This paper develops a production function which two separate
elasticities of substitution between two input factors. One of these
elasticities is obtained if the factor intensity equals a particular
baseline value. The second part of the paper gives an economic
application and shows the theoretical properties of this production
function regarding the development of relative capital intensities and
relative production per efficiency unit of labor. Inequality across
countries widens in transition to the steady state. Panel data on the
development of these relative figures seem to support the implications
of the above production function.
JEL: O11,
O33, E23
Paper:
Paper available as pdf-file.
Beitrag Nr. 294, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Jürgen
Antony
email: juergen.antony@wiwi.uni-augsburg.de
v.
K., 07.08.2007