Any serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification this is also the approach used by numerous studies analyzing the relative capital-skill...

Evidence from a sample of countries show that people roughly spend as much time watching television as earning their living. Moreover, television viewing and work hours are positively correlated across countries. A simple model based on complementarities in the organization of free time is...

Risk averse investors have to be compensated in higher expected returns when facing investments with higher risk. Education is an important investment therefore we use the results for 16 countries to test the positive relationship between return to education and the risk involved in this...