Evidence of induced innovation in US Sectoral Capital’s Shares

We use annual data on capital’s share and relative factor prices from 35 US industries from 1960 to 2005 to test the induced innovation hypothesis. We derive, from a production function framework, testable implications for the effect of contemporaneous and lagged factor price ratios on capital’s sha...

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Autores Principales: Young, Andrew T., Zuleta, Hernando, Garcia-Suaza, Andres
Formato: Documento de trabajo (Working Paper)
Lenguaje:Inglés (English)
Publicado: Universidad del Rosario 2010
Materias:
Acceso en línea:http://repository.urosario.edu.co/handle/10336/10974
id ir-10336-10974
recordtype dspace
spelling ir-10336-109742019-09-19T12:37:01Z Evidence of induced innovation in US Sectoral Capital’s Shares Young, Andrew T. Zuleta, Hernando Garcia-Suaza, Andres Induced innovation Biased technical change Capital’s share Labor’s share Elasticity of substitution Producción Innovaciones tecnológicas::Aspectos Económicos Desarrollo económico Productividad industrial Productividad de capital Productividad del trabajo We use annual data on capital’s share and relative factor prices from 35 US industries from 1960 to 2005 to test the induced innovation hypothesis. We derive, from a production function framework, testable implications for the effect of contemporaneous and lagged factor price ratios on capital’s share of production. The predicted effect is positive or negative depending on the elasticity of substitution between labor and capital. From panel regressions, the estimated effect of the contemporaneous factor price ratio implies an elasticity of substitution that is less than unity, consistent with the consensus from the literature. Based on this, our negative estimated effects for lagged price ratios are both statistically significant and consistent with the induced innovation hypothesis. 2010-03 2015-10-06T12:59:29Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/acceptedVersion http://repository.urosario.edu.co/handle/10336/10974 1 eng info:eu-repo/semantics/openAccess application/pdf Universidad del Rosario Facultad de Economía instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Induced innovation
Biased technical change
Capital’s share
Labor’s share
Elasticity of substitution
Producción
Innovaciones tecnológicas::Aspectos Económicos
Desarrollo económico
Productividad industrial
Productividad de capital
Productividad del trabajo
spellingShingle Induced innovation
Biased technical change
Capital’s share
Labor’s share
Elasticity of substitution
Producción
Innovaciones tecnológicas::Aspectos Económicos
Desarrollo económico
Productividad industrial
Productividad de capital
Productividad del trabajo
Young, Andrew T.
Zuleta, Hernando
Garcia-Suaza, Andres
Evidence of induced innovation in US Sectoral Capital’s Shares
description We use annual data on capital’s share and relative factor prices from 35 US industries from 1960 to 2005 to test the induced innovation hypothesis. We derive, from a production function framework, testable implications for the effect of contemporaneous and lagged factor price ratios on capital’s share of production. The predicted effect is positive or negative depending on the elasticity of substitution between labor and capital. From panel regressions, the estimated effect of the contemporaneous factor price ratio implies an elasticity of substitution that is less than unity, consistent with the consensus from the literature. Based on this, our negative estimated effects for lagged price ratios are both statistically significant and consistent with the induced innovation hypothesis.
format Documento de trabajo (Working Paper)
author Young, Andrew T.
Zuleta, Hernando
Garcia-Suaza, Andres
author_facet Young, Andrew T.
Zuleta, Hernando
Garcia-Suaza, Andres
author_sort Young, Andrew T.
title Evidence of induced innovation in US Sectoral Capital’s Shares
title_short Evidence of induced innovation in US Sectoral Capital’s Shares
title_full Evidence of induced innovation in US Sectoral Capital’s Shares
title_fullStr Evidence of induced innovation in US Sectoral Capital’s Shares
title_full_unstemmed Evidence of induced innovation in US Sectoral Capital’s Shares
title_sort evidence of induced innovation in us sectoral capital’s shares
publisher Universidad del Rosario
publishDate 2010
url http://repository.urosario.edu.co/handle/10336/10974
_version_ 1645141259457658880
score 10,844939