The productive capacity that a firm would choose must mainly depend on its expectations concerning future demand and the profitability of production. The desired capital intensity must mainly depend on the relative cost of capital with respect to labor. In order to study conditions under which...

Answers to various questions of applied macroeconomics depend on the values given to elasticities of substitution between the demands for factors, these demands being aggregated across productive sectors. Such elasticities reflect not only substitutabilities within productive sectors, but also...

It is often argued that present practices in evaluating employment effects of decreases in the cost of unskilled labor lead to under-estimations: an aggregation bias is ignored when microeconometric estimations are transposed. A model in which appear two elasticites of substitution, one in...