Simultaneity represents a fundamental problem when estimating the elasticity of substitution between capital and labour. To overcome this problem, a wide variety of external instruments has been applied in the literature. However, the use of instruments may lead to wrong inference if they are...

In this article the elasticity of substitution of CES production function is estimated for selected production sectors of Slovak economy. For purpose of estimation indirect form of CES function was utilized. Results of our analysis shown that for certain sectors other types of production...