Factor shares at the sector level, Colombia 1990-2005
In general, empirical studies on economics rely on the assumption of constant capital share of income both at the aggregate level and at the sector level. However, there is no empirical evidence supporting the constancy of capital share at the sector level. In this paper, using Colombian data, we me...
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| Formato: | Documento de trabajo (Working Paper) |
| Lenguaje: | Español (Spanish) |
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Universidad del Rosario
2009
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| Acceso en línea: | http://repository.urosario.edu.co/handle/10336/11012 |
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ir-10336-110122019-09-19T12:37:01Z Factor shares at the sector level, Colombia 1990-2005 Zuleta, Hernando Garcia-Suaza, Andres Young, Andrew T. Economía financiera Economía Capital::Aspectos Económicos Economía informal Ciclos económicos Tasas de interés Factor Shares income distribution Colombia economic growth cycles In general, empirical studies on economics rely on the assumption of constant capital share of income both at the aggregate level and at the sector level. However, there is no empirical evidence supporting the constancy of capital share at the sector level. In this paper, using Colombian data, we measure capital share for 48 sectors during the period 1990-2005. We also explore the relation between capital's share and factor prices and the behavior of capital share during the business cycle. The main results are the following: (i) capital share is not constant but, rather, has an increasing trend; (ii) capital shares growth rates positively correlate with sector value-added growth; (iii) the capital shares behave pro-cyclically; and (iv) there is a positive correlation between capital shares and real wages and a negative correlation between capital shares and interest rates. These results suggest that the usual assumption of constant factor shares is not accurate. 2009 2015-10-14T14:05:57Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/acceptedVersion http://repository.urosario.edu.co/handle/10336/11012 spa 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 |
Español (Spanish) |
| topic |
Economía financiera Economía Capital::Aspectos Económicos Economía informal Ciclos económicos Tasas de interés Factor Shares income distribution Colombia economic growth cycles |
| spellingShingle |
Economía financiera Economía Capital::Aspectos Económicos Economía informal Ciclos económicos Tasas de interés Factor Shares income distribution Colombia economic growth cycles Zuleta, Hernando Garcia-Suaza, Andres Young, Andrew T. Factor shares at the sector level, Colombia 1990-2005 |
| description |
In general, empirical studies on economics rely on the assumption of constant capital share of income both at the aggregate level and at the sector level. However, there is no empirical evidence supporting the constancy of capital share at the sector level. In this paper, using Colombian data, we measure capital share for 48 sectors during the period 1990-2005. We also explore the relation between capital's share and factor prices and the behavior of capital share during the business cycle. The main results are the following: (i) capital share is not constant but, rather, has an increasing trend; (ii) capital shares growth rates positively correlate with sector value-added growth; (iii) the capital shares behave pro-cyclically; and (iv) there is a positive correlation between capital shares and real wages and a negative correlation between capital shares and interest rates. These results suggest that the usual assumption of constant factor shares is not accurate. |
| format |
Documento de trabajo (Working Paper) |
| author |
Zuleta, Hernando Garcia-Suaza, Andres Young, Andrew T. |
| author_facet |
Zuleta, Hernando Garcia-Suaza, Andres Young, Andrew T. |
| author_sort |
Zuleta, Hernando |
| title |
Factor shares at the sector level, Colombia 1990-2005 |
| title_short |
Factor shares at the sector level, Colombia 1990-2005 |
| title_full |
Factor shares at the sector level, Colombia 1990-2005 |
| title_fullStr |
Factor shares at the sector level, Colombia 1990-2005 |
| title_full_unstemmed |
Factor shares at the sector level, Colombia 1990-2005 |
| title_sort |
factor shares at the sector level, colombia 1990-2005 |
| publisher |
Universidad del Rosario |
| publishDate |
2009 |
| url |
http://repository.urosario.edu.co/handle/10336/11012 |
| _version_ |
1645141881874546688 |
| score |
12,131701 |