The elasticity of substitution between capital and labor (σ) is usually considered a "deep parameter". This paper shows … substitution between capital and labor is below unity; that it increases along with the degree of globalization; but it decreases … enhances the substitutability between capital and labor. We also find evidence of a non-significant impact of the capital …

The role of capital accumulation as a driver of the labor income share requires capital and labor to be substitutes …, which appears paradoxical in a world predominantly characterized by complementarity between capital and labor. This paper … argues that the composition of skills in the labor force and an identification of the elasticity parameters between capital …

The accumulation principle suggests that complementarity between capital and labor forces the labor income share to … rise in the presence of capital accumulation. The CES model estimates using data from 20 Japanese industries between 1970 … as a non-linear function of the Weibull distribution of capital-labor ratio. Empirical findings support the choice of a …

contrasted patterns in terms of capital deepening. …

contrasted patterns in terms of capital deepening. …

could get more GDP without innovation by simply duplicating existing physical capital and labour (e.g. adding a second … addition existing physical capital and labour. In our measure this is the contribution to GDP growth of market sector … investment in knowledge (or intangible) capital. This contribution is measured from company spending on knowledge …

member states from 1998 to 2007. We find that (a) the marginal impact of ICT capital is higher when it is complemented with … intangible capital, and (b) non-R&D intangible capital has a higher estimated output elasticity than its conventionally …-calculated factor share. These findings suggest investments in knowledge-based capital, i.e., intangible capital, produce productivity …