We examine the two-level nested Constant Elasticity of Substitution production function where both capital and labor are disaggregated in two classes. We propose a normalized system estimation method to retrieve estimates of the inter- and intra-class elasticities of substitution and...

This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to aggregate beta convergence, using a newly constructed eight-sector database. The main findings are twofold. First, both within and sectoral reallocation have...