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Factor Shares, the Price Markup, and the Elasticity of Substitution between Capital and Labor
elasticity of substitution price markup factor shares capital deepening
2012/10/23
In a Walrasian labor market, the labor income share is constant under the assumptions of a Cobb-Douglas production function and perfect competition. Given the observed decline of the labor share in re...
The Frisch Elasticity in the Mercosur Countries: A Pseudo-Panel Approach
Frisch elasticity labor supply liqui dity constraints Mercosur life-cycle models pseudo-panel (synthetic panel)
2012/10/23
This paper provides estimates for the Mercosur countries of the Frisch elasticity – i.e., the elasticity of substitution between worked hours and real wages holding constant the marginal utility of we...
Elasticity of Supply to the Firm and the Business Cycle
monopsony labor market frictions business cycles
2012/10/24
A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite, implying that firms may have wage setting power. However, these studies capture onl...