Why labor income shares seem to be constant?
| Data(s) |
2007
|
|---|---|
| Resumo |
The common assumptions that labor income share does not change over time or across countries and that factor income shares are equal to the elasticity of output with respect to factors have had important implications for economic theory. However, there are various theoretical reasons why the elasticity of output with respect to reproducible factors should be correlated with the stage of development. In particular, the behavior of international trade and capital flows and the existence of factor saving innovations imply such a correlation. If this correlation exists and if factor income shares are equal to the elasticity of output with respect to factors then the labor income share must be negatively correlated with the stage of development. We propose an explanation for why labor income share has no correlation with income per capita: the existence of a labor intensive sector which produces non tradable goods. |
| Formato |
application/pdf |
| Identificador | |
| Publicador |
Facultad de Economía |
| Relação |
Serie documentos de trabajo. No 15 (Marzo 2007) https://ideas.repec.org/p/col/000092/003779.html |
| Direitos |
info:eu-repo/semantics/openAccess |
| Fonte |
instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario Boldrin, M. and Levine, D. K. (2002) ‘Factor Saving Innovations’. Journal of Economic Theory, 105 (1), 18-41. Cobb, C. and Douglas, P.H. (1928) ‘A theory of Production’. American Economic Review, 18, 139–165 Blonigen, B. and W. Wilson (1999) ‘Explaining Armington: What Determines Substitutability between Home and Foreign Goods’. Canadian Journal of Economics, 32 (1), 1-21 Caselli, F. and Feyrer, J. (2007) ‘The Marginal Product of Capital’. Quarterly Journal of Economics, forthcoming. Dunning, John H. (1998) Explaining International Production London: Unwin Hyman. Gollin, D. (2002) ‘Getting Income Shares Right’. Journal of Political Economy, 110 (2), 458-474. Hansen, G. and Prescott, E. (2002) ‘From Malthus to Solow’ American Economic Review, 92 (4), 1205-1217. Heckscher, Eli F. (1919) ‘The Effect of Foreign Trade on the Distribution of Income’. Ekonomisk Tidskrif,. 497-512 Kaldor, N. (1961) ‘Capital Accumulation and Economic Growth’ In FA Lutz and DC Hague (eds), The Theory of Capital. New York St, Martin’s Press, 177-222. Krueger, A. (1999) ‘Measuring Labor's Share’. American Economic Review, 89 (2), 45-51. Ohlin, Bertil (1993) Interregional and International Trade. Cambridge: Harvard University Press. Solow, R. (1957) ‘Technical Change and the Aggregate Production Function’. Review of Economics and Statistics, 39, 312-320. Young, A. (1995) ‘The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience’. Quarterly Journal of Economics, 110: 641-680 Young, A. T. (2006) ‘One of the Things We Know that Ain't So: Why US Labor's Share is not Relatively Stable’. Working Paper, University of Mississippi http://ssrn.com/abstract=650783 Zeira, J. (1998) ‘Workers, Machines and Economic Growth’. Quarterly Journal of Economics, 113 (4), 1091-1118. Zuleta, H. (2006) ‘Factor Saving Innovations and Factor Income Shares’ Working Paper, Universidad del Rosario. http://econpapers.repec.org/paper/col001070/002778.htm |
| Palavras-Chave | #Economía laboral #Producción - Aspectos económicos #Modelos económicos #Economía #331 #Factor Income Shares #Elasticity of output with respect to factors #two sector model |
| Tipo |
info:eu-repo/semantics/book info:eu-repo/semantics/acceptedVersion |
