Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/88125 
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers No. 13-092
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
Sectoral heterogeneity is crucial to address several economic questions. This paper provides a detailed mapping of sectoral production possibility frontiers, using different nesting structures and levels of aggregation (primary, secondary, tertiary activities and energy-intensive firms). Elasticities of substitution between capital, labour and energy are identified by employing an international multi-sector dataset, accounting for biased technological change and normalising the production function to clusters of observations. Complementarity dominates, with the noteworthy exception of the capital-labour composite, close to Cobb-Douglas. I also present some stylized facts relating substitution elasticities to sectoral characteristics.
Subjects: 
Constant Elasticity of Substitution
Normalisation
Sectoral Disaggregation
Nested CES Structure
Energy Demand
JEL: 
C68
O14
O41
Q43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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