KLEMS database. I distinguish between three types of capital: information and communication technologies (ICT), intellectual … property (IP) capital, and traditional capital. I assume that the aggregate output is produced using labor and these three … types of capital and allow for differences in the elasticities of substitution between labor, an aggregate of ICT and IP …

The elasticity of substitution between capital and labor features prominently in several areas of economic research …

heterogeneous agents, human capital investment and capital-skill complementarity. It shows that increasing funding delivers in the … long run higher physical and human capital and therefore higher output, but also higher wage and income inequality. The …

employment (and unemployment) both directly and indirectly, via its impact on regional profits and the capital stock. …

elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa ….s theorem to show that introducing human capital accumulation in the standard way does not resolve the puzzle. However, balanced … growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We …

This paper shows that capital-skill complementarity provides a quantitatively significant rationale to tax capital for … redistributive governments. The optimal capital income tax rate is 60%, which is significantly higher than the optimal rate of 48% in … an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.67 along the …

intensification of capital-skill complementarity in the production process. In light of the growing significance of skilled labor for … fostering the return to physical capital, elites in society were induced to relinquish their historically profitable coercion of … labor in favor of employing free skilled workers, thereby incentivizing the masses to engage in broad-based human capital …