Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210380 
Year of Publication: 
2012
Series/Report no.: 
Treasury Working Paper No. 2012-02
Publisher: 
The Australian Government, The Treasury, Canberra
Abstract: 
We derive a conditional long run labour demand equation via a representative firm level profit maximising problem, where production takes place according to a constant elasticity of substitution (CES) production function. This theoretical framework is augmented by cyclical explanatory variables to form an error correction model, which is then estimated using standard econometric methods. Estimates of important labour demand parameters, such as the elasticity of substitution between capital and labour, are consistent with previous Australian studies.
Subjects: 
labour demand
technical change
production function
JEL: 
J01
J23
J50
ISBN: 
978‐0‐642‐74867‐6
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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