León-Ledesma, Miguel A.; McAdam, Peter; Willman, Alpo - In: American Economic Review 100 (2010) 4, pp. 1330-57
The capital-labor substitution elasticity and technical biases in production are critical parameters. The received wisdom claims their joint identification is infeasible. We challenge that interpretation. Putting the new approach of "normalized" production functions at the heart of a Monte Carlo...