Evidence of induced innovation in US Sectoral Capital’s Shares
We use annual data on capital’s share and relative factor prices from 35 US industries from 1960 to 2005 to test the induced innovation hypothesis. We derive, from a production function framework, testable implications for the effect of contemporaneous and lagged factor price ratios on capital’s sha...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2010
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- eng
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/10974
- Acceso en línea:
- https://doi.org/10.48713/10336_10974
http://repository.urosario.edu.co/handle/10336/10974
- Palabra clave:
- Induced innovation
Biased technical change
Capital’s share
Labor’s share
Elasticity of substitution
Producción
Innovaciones tecnológicas::Aspectos Económicos
Desarrollo económico
Productividad industrial
Productividad de capital
Productividad del trabajo
- Rights
- License
- http://purl.org/coar/access_right/c_abf2
Summary: | We use annual data on capital’s share and relative factor prices from 35 US industries from 1960 to 2005 to test the induced innovation hypothesis. We derive, from a production function framework, testable implications for the effect of contemporaneous and lagged factor price ratios on capital’s share of production. The predicted effect is positive or negative depending on the elasticity of substitution between labor and capital. From panel regressions, the estimated effect of the contemporaneous factor price ratio implies an elasticity of substitution that is less than unity, consistent with the consensus from the literature. Based on this, our negative estimated effects for lagged price ratios are both statistically significant and consistent with the induced innovation hypothesis. |
---|