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We derive the aggregate normalized CES production function from idea-based microfoundations where firms are allowed to choose their capital- and labor-augmenting technology optimally from a menu of available technologies. This menu is in turn augmented through factor-specific R&D. The considered...
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itself is also microfounded here: based on extreme value theory, it is found to be an accurate and robust approximation of …
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We derive the aggregate normalized CES production function from idea-based microfoundations where firms are allowed to choose their capital- and labor-augmenting technology optimally from a menu of available technologies. This menu is in turn augmented through factor-specific R&D. The considered...
Persistent link: https://www.econbiz.de/10011124108
normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits … ; Factor-Augmenting Technical Change ; Growth Theory ; Identification ; Estimation …
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