CoPS/IMPACT Working Paper Number OP-10

Title: The Application of a Random Coefficient Model to the Problem of Estimating Aggregate Production Parameters

Author: Vern Caddy

Abstract

This 1977 paper is about estimating elasticities for the ORANI model -- in particular the elasticity of substitution between capital and labour. Literature is surveyed, and a theoretical approach outlined. Then data and regression results are briefly discussed. From cross-sectional data, the average elasticity of substitution between capital and labour for Australian manufacturing is estimated to be 1.28.

Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

JEL Classification: J23, D24, C20.

Keywords: Production functions.

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