| Imprint: |
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada 2014 |
| Description: |
20 p. |
| Abstract: |
We estimate the determinants of capital intensity in Japan and the US, characterized by striking different paths. We augment an otherwise standard Constant Elasticity of Substitution (CES) model with demand-side considerations, which we find especially relevant in the US. In this augmented setting, the elasticity of substitution between capital and labor is placed around 0. 85 in Japan, and 0. 30 in the US. We also find evidence of biased technical change, which is capital-saving in Japan but labor-saving in the US. These differences help us explain the diverse experience in the capital deepening process of these economies, and lead us to conclude that demand-side drivers may also be relevant to account for different growth experiences. A close look at the nature of technological change is also needed before designing one-size-fits-all industrial, economic growth, and/or labor market policies. |
| Grants: |
Ministerio de Economía y Competitividad CO2012-13081
Ministerio de Educación y Ciencia FPU/AP2008-02662
|
| Rights: |
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.  |
| Language: |
Anglès |
| Series: |
Departament d'Economia Aplicada. Documents de treball |
| Series: |
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada) ; 1404 |
| Document: |
Working paper |
| Subject: |
Capital intensity ;
Biased technological change ;
Elasticity of substitution ;
Capacity utilization rate ;
Employment |
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