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Estimation Of Substitution Parameter In Indian Industries: A Disaggregated Approach

Author

Listed:
  • Pohit, Sanjib
  • Chadha, Rajesh
  • Bina, P. L.
  • Sangeeta, N

Abstract

This paper attempts to estimate the elasticity of substitution between labor and capital for Indian industries classified according to 21 three-digit and 2 one-digit ISIC sectors. The paper also tests whether the estimated values of elasticity of substitution between labor and capital for a sector tend to change from one year to another and also whether it is Cobb-Douglas or CES or VES production function that characterizes a particular sector.

Suggested Citation

  • Pohit, Sanjib & Chadha, Rajesh & Bina, P. L. & Sangeeta, N, 1996. "Estimation Of Substitution Parameter In Indian Industries: A Disaggregated Approach," MPRA Paper 94717, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94717
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    References listed on IDEAS

    as
    1. S. Clemhout, 1968. "The Class of Homothetic Isoquant Production Functions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(1), pages 91-104.
    2. Kazi, Umar A, 1980. "The Variable Elasticity of Substitution Production Function: A Case Study for Indian Manufacturing Industries," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 163-175, March.
    3. Marc Nerlove, 1967. "Recent Empirical Studies of the CES and Related Production Functions," NBER Chapters, in: The Theory and Empirical Analysis of Production, pages 55-136, National Bureau of Economic Research, Inc.
    4. C. A. Knox Lovell, 1968. "Capacity Utilization and Production Function Estimation in Postwar American Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 219-239.
    5. Jora R. Minasian, 1961. "Elasticities of Substitution and Constant-Output Demand Curves for Labor," Journal of Political Economy, University of Chicago Press, vol. 69(3), pages 261-261.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Industry; India; Elasticity of Substitution;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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