Template-Type: ReDIF-Paper 1.0

Author-Name: Juergen Antony
Author-X-Name-First: Juergen
Author-X-Name-Last: Antony

Title: A Dual Elasticity of Substitution Production Function with an Application to Cross Country Inequality

Abstract: This paper develops a production function which two separate elasticities
of substitution between two input factors. One of these elasticities is obtained
if the factor intensity equals a particular baseline value. The second part of
the paper gives an economic application and shows the theoretical properties of
this production function regarding the development of relative capital intensities
and relative production per efficiency unit of labor. Inequality across countries
widens in transition to the steady state. Panel data on the development of
these relative figures seem to support the implications of the above production
function.
Length:  10 pages
Creation-Date:  2007-08
File-URL: http://www.bgpe.de/texte/DP/031_antony.pdf
File-Format: Application/pdf
File-Function: First version, 2007
Number: 031
Classification-JEL: O11, O33, E23
Keywords: Capital and labor substitution, cross country inequality
Handle: RePEc:bav:wpaper:031_antony