Separability and Substitutability in Australian Manufacturing

This 1978 paper is about modelling production input demands for the ORANI model. It examines a nested production structure where capital and labour are combined to form "value-added", which is in turn combined with a materials aggregate to form output. The nested production structure is contrasted with a more general translog form. Using trans-log, own-and cross-price elasticities are estimated. The elasticity matrix does not show the patterns implied by the nesting hypothesis which is therefore rejected. Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality