Can variable elasticity of substitution explain changes in labor shares?

A Bellocchi, G Travaglini - Journal of Macroeconomics, 2023 - Elsevier
In CES production functions, the magnitude of the elasticity of substitution between capital
and labor (σ) is crucial to explain the evolution of the labor share. The decline in labor share …

Income and factor substitution: an investigation on the Solow growth model under the constant elasticity of substitution

S Alatas - Journal of Economic Studies, 2022 - emerald.com
Purpose The purpose of this study is to examine whether the elasticity of substitution (ES)
varies between developed and developing countries. Design/methodology/approach The …