Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/75527
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Type: | Journal article |
Title: | Capital-labor substitution, sector-specific externalities, and indeterminacy |
Author: | Photphisutthiphong, N. Weder, M. |
Citation: | Macroeconomic Dynamics, 2012; 16(SUPPL. 3):411-421 |
Publisher: | Cambridge Univ Press |
Issue Date: | 2012 |
ISSN: | 1365-1005 1469-8056 |
Statement of Responsibility: | Nopphawan Photphisutthiphong and Mark Weder |
Abstract: | This paper examines the effect of the elasticity of technological substitution on the existence of equilibrium indeterminacy in two-sector economies. Following recent empirical evidence, the elasticity of substitution between capital and labor is below unity and we find that this requires a higher degree of productive externalities in order to still be able to produce indeterminate equilibria. However, empirically realistic rates of substitution do not rule out indeterminacy. |
Keywords: | Two-Sector Models Indeterminacy CES Production Functions Externalities |
Rights: | © Cambridge University Press 2012 |
DOI: | 10.1017/S1365100510000994 |
Published version: | http://dx.doi.org/10.1017/s1365100510000994 |
Appears in Collections: | Aurora harvest 4 Economics publications |
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RA_hdl_75527.pdf Restricted Access | Restricted Access | 215.4 kB | Adobe PDF | View/Open |
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