IDEAS home Printed from https://ideas.repec.org/a/ren/journl/v11y2019i3p399-417.html
   My bibliography  Save this article

Trends in Factor Price Elasticities Adding Energy to Capital and Labor in the US Economy Net Foreign Assets, Financial Liberalization and Real Exchange Rates

Author

Listed:
  • Henry Thompson

    (Auburn University)

Abstract

This paper estimates trends in factor price elasticities adding energy Btu input to fixed capital assets and the labor force in annual US data from 1949 to 2013. Second order effects improve estimates of the production function in log differences. The unrestricted estimates test for concavity and constant returns to scale. Adding energy input reduces the apparent productivity of labor and reveals strong capital-labor factor price elasticities with pronounced trends. Energy and labor trend to become weak complements. These trends offer insight into recent economic history and keys to predicting the future as well.

Suggested Citation

  • Henry Thompson, 2019. "Trends in Factor Price Elasticities Adding Energy to Capital and Labor in the US Economy Net Foreign Assets, Financial Liberalization and Real Exchange Rates," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 11(3), pages 399-417, November.
    • Handle: RePEc:ren:journl:v:11:y:2019:i:3:p:399-417
    as

    Download full text from publisher

    File URL: https://openjournals.uwaterloo.ca/index.php/rofea/article/view/1690/2041
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    energy input; factor productivity; factor price elasticity;
    All these keywords.

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ren:journl:v:11:y:2019:i:3:p:399-417. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Jerzy (Jurek) Konieczny (email available below). General contact details of provider: http://www.rcfea.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.