A detailed decomposition of the sources of the Total Factor Productivity (TFP) growth index within an output distance function framework was carried out, looking at the following components: technical change, change in technical efficiency, scale component, and violations of the profit...

Empirical evidence on the relationship between technology shocks and e.g. hours worked hinges crucially on the identification of the unobservable technological progress. In this paper, we study different measures of technology in order to find out (i) to what extent they capture the same...

Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constant-elasticity-ofsubstitution (CES)...

Despite being critical parameters in many economic fields, the received wisdom, in theoretical and empirical literatures, states that joint identification of the elasticity of capital-labor substitution and technical bias is infeasible. This paper challenges that pessimistic interpretation....

Recent econometric analyses of growth in industrialized countries reveal that energy?s elasticity of production systematically exceeds its factor cost share, whereas for labor the opposite holds. The paper reviews these analyses that reflect the observed direction of technological change towards...

In very different fields of economics, economic inference and policy evaluation require economists to parametrize a production function that links measures of input factors to measures of output. While doing so, strong assumptions are implicitly made about microeconomic variables governing the...

This paper reviews the literature on two-sided atomeless assignment models of workers to tasks. Using simple parametric examples, the fundamental differences between the comparative advantage and the scale of operations models are illustrated. Holding the distributions of abilities and tasks and...

In "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Krusell et al. (2000) analyzed the capital-skill complementarity hypothesis as an explanation for the behavior of the U.S. skill premium. This paper shows that their model’s fit and the values of the estimated...