Variable markups and capital-labor substitution

C-Tier

Journal: Economics Letters

Year: 2018

Volume: 171

Issue: C

Pages: 34-36

Authors (2)

Jiang, Wei (University of Kent) León-Ledesma, Miguel (Centre for Economic Policy Res...)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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Abstract

We provide new estimates of the elasticity of capital-labor substitution (σ) and the bias in technical change allowing price markups to change over time as shown in De Loecker and Eeckhout (2017). Our estimate of σ is in the region of 0.8 and technical change is net capital-augmenting.

Variable markups and capital-labor substitution

Authors (2)

Abstract

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