Resource title

Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour

Resource image

image for OpenScout resource :: Curvature conditions and substitution pattern among capital, energy, materials and heterogeneous labour

Resource description

This study deals with the determinants of factor demand in 27 industries of the manufacturing sector during the period 1978 to 1990. Using a quadratic cost function, six production factors are distinguished : capital, energy, three types of labour and intermediate materials. A parametric test of the concavity of the cost function in prices is provided and price elasticities are compared when curvature conditions are imposed or not. The result show, firstly, that in general estimates do not appear very sensitive to imposing theoretical restrictions implied by optimising behaviour. Secondly, demand for unskilled and medium skilled labour than any other pairs of inputs.

Resource author

Bertrand M. Koebel, Martin Falk

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24293

Resource license

Adapt according to the presented license agreement and reference the original author.