Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/206607
Authors: 
Levy, Daniel
Year of Publication: 
1994
Citation: 
[Journal:] Southern Economic Journal [ISSN:] 2325-8012 [Volume:] 60 [Issue:] 4 [Pages:] 946-960
Abstract: 
Using a new series of capital stock and frequency domain analysis, this paper provides new empirical evidence on the relative importance of capital and labor in the determination of output in the short and long-run. Contrary to the common practice in the traditional growth accounting literature of assigning weights of 0.3 and 0.7 to capital and labor inputs respectively, the evidence presented here suggests that capital is a far more important factor than labor for determination of output at and near the zero frequency band. Furthermore, I show that the zero-frequency labor elasticity of output may well be close to zero, or even zero. Additional findings reported here support the traditional accelerator model of investment as a good description of the long-run investment process.
Subjects: 
Growth Accounting
Capital Investment
Output Fluctuation
Employment
Spectrum and Cross-Spectrum
Coherence
Phase Shift
Gain
Zero-Frequency
Capital and Labor Elasticity of Output
Short-Run
Long-Run
Capital's and Labor's Share in Output
Accelerator Model of Investment
JEL: 
O47
E22
E24
E32
URL of the first edition: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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