The elasticity of substitution and labor-saving innovations in the Spanish regions
Abstract: This paper performs a nonlinear estimation of a normalized CES production function within a system of equations with a panel of Spanish regions for the period 1964-2013. It obtains an elasticity of substitution below one and identifies different rates of factor-augmenting technical progress. The results support for labor-saving innovations hypothesis for the Spanish case. Nevertheless, they do not support a relationship between the elasticity of substitution and the initial regional capital per worker. The results do not change if labor is adjusted by human capital.
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| Format: | Digital revista |
| Language: | English |
| Published: |
Universidad de Chile. Departamento de Economía
2022
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| Online Access: | http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862022000200123 |
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