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This paper discusses McCombie's (1987) empirical evidence on the Simon-Shaikh critique. It is argued that while the theoretical argument is correct, the evidence presented depends on the adjustment of the stock of capital for capacity utilization. Probably factor shares are not sufficiently...
Persistent link: https://www.econbiz.de/10009213398
This paper shows that previous arguments about the problems in interpreting the coefficients in multiplicative-logarithmic functions, derived from an arbitrary rebasing of the series, are incorrect. In the specific case of the translog production function, the tests for the CES, Cobb-Douglas and...
Persistent link: https://www.econbiz.de/10005435492