Technology Choice and the Evolution of the Elasticity of Substitution in South Korea

• 발행기관: 고려대학교 미래성장연구원
• 저자명: Marco Di Pietro
• 간행물 정보: 『미래성장연구』제7권 1호, 21~37쪽, 전체 17쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

This paper estimates a dynamic general equilibrium model incorporating technology choice, in line with what proposed by León-Ledesma and Satchi (2019). This framework allows to determine how the capital/labour share and the long-run elasticity of substitution have evolved along the long-run growth path in South Korea in the last 30 years. We also compare the empirical performance of this model, in terms of the model s ability to explain the data, with several alternative specifications of the production function, namely the Cobb-Douglas and CES functions. Our estimates show the superiority of the technology choice specification over both the Cobb-Douglas and CES technology.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. The Model

Ⅳ. Estimation

Ⅴ. Conclusions

키워드

Balanced growth Appropriate technology Elasticity of substitution JEL Classification Number: E25 O33 O40