@techreport{Chirinko2004That,
abstract = {The elasticity of substitution between capital and labor features prominently in several areas
of economic research. However, a consensus estimate remains elusive. We develop an
estimation strategy that filters panel data in an original way and avoids several pitfalls -
difficult-to-specify dynamics, transitory time-series variation, and positively sloped supply
schedules - inherent in investment equations that can bias the estimated elasticity. Results are
based on an extensive panel containing 1,860 manufacturing and non-manufacturing firms.
Our model generates a precisely estimated elasticity of approximately 0.40. The method
developed here may prove useful in estimating other structural parameters from panel
datasets.},
author = {Robert S. Chirinko and Steven M. Fazzari and Andrew P. Meyer},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E22; H32; 330; Kapital; Arbeit; Faktorsubstitution; Substitutionselastizit\"{a}t; Panel; Sch\"{a}tzung; Vereinigte Staaten},
language = {eng},
number = {1240},
title = {That elusive elasticity : a long-panel approach to estimating the capital-labor substitution elasticity},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18879},
year = {2004}
}
