New estimates of an aggregate long-term production function for the post-war U.S. economy are reported. The results indicate that this long-term aggregate production function exhibits a slight but statistically significant increasing returns to scale. Since virtually all econometric growth...

The effect of inflation on the capital stock is considered in an overlapping generations framework with a Cash-in-Advance constraint on consumption expenditures. The adjustment mechanism underlying the model is that of a traditional model with the real balance effect on savings.

This paper studies the stochastic processes of household income in China using longitudinal data from CHNS 1989–2009. We consider both labor income and total household income. We find that (i) compared with the US households in PSID, income of the Chinese households is much more uncertain;...

Can higher technological capacity help firms to recover quicker from recessions? Analyzing the effects of the COVID-19 pandemic on firm revenues in several countries, we find that firms headquartered in jurisdictions with better digital infrastructure generated relatively higher revenue during...

Recent literature has reported situations in which discretion dominates timeless perspective in the presence of elements that reduce the slope of the New Keynesian Phillips curve. Considering a model-consistent welfare metric inhibits this mechanism in the standard New Keynesian framework.

Diewert and Fox (2013) proposed decompositions of a Malmquist-type productivity index into explanatory factors, with a focus on extracting technical progress, technical efficiency change and returns to scale components. A major problem with their decompositions is that it may be difficult to...

In this paper, we empirically examine the effects of health, education, and urbanization on the total factor productivity (TFP) of a large number of countries. We find that both urbanization and health indicators (life expectancy, infant mortality rate, and the risk of malaria) significantly...

Housing prices diverge from construction prices after 1997 in four major countries. Besides, total-factor productivity (TFP) differences between construction and the general economy account for the evolution of construction prices in the US and Germany, but not in the UK and Spain.

This paper characterizes a class of regularly varying production functions with an asymptotic elasticity of substitution equal to one. In particular, it is shown that these functions asymptotically approximate the Cobb–Douglas form. The results generalize and unify existing results in the...

Estimation of the non-linear Constant Elasticity of Scale (CES) function is generally considered problematic due to convergence problems and unstable and/or meaningless results. These problems often arise from a non-smooth objective function with large flat areas, the discontinuity of the CES...