Multifactor CES General Equilibrium: Models and Applications

Fuente: arXiv
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Main Authors: Kim, Jiyoung, Nakano, Satoshi, Nishimura, Kazuhiko
Format: Preprint
Published: 2016
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author Kim, Jiyoung
Nakano, Satoshi
Nishimura, Kazuhiko
author_facet Kim, Jiyoung
Nakano, Satoshi
Nishimura, Kazuhiko
contents Sector specific multifactor CES elasticity of substitution and the corresponding productivity growths are jointly measured by regressing the growths of factor-wise cost shares against the growths of factor prices. We use linked input-output tables for Japan and the Republic of Korea as the data source for factor price and cost shares in two temporally distant states. We then construct a multi-sectoral general equilibrium model using the system of estimated CES unit cost functions, and evaluate the economy-wide propagation of an exogenous productivity stimuli, in terms of welfare. Further, we examine the differences between models based on a priori elasticity such as Leontief and Cobb-Douglas.
format Preprint
id arxiv_https___arxiv_org_abs_1608_01365
institution arXiv
publishDate 2016
record_format arxiv
spellingShingle Multifactor CES General Equilibrium: Models and Applications
Kim, Jiyoung
Nakano, Satoshi
Nishimura, Kazuhiko
Applications
General Finance
Sector specific multifactor CES elasticity of substitution and the corresponding productivity growths are jointly measured by regressing the growths of factor-wise cost shares against the growths of factor prices. We use linked input-output tables for Japan and the Republic of Korea as the data source for factor price and cost shares in two temporally distant states. We then construct a multi-sectoral general equilibrium model using the system of estimated CES unit cost functions, and evaluate the economy-wide propagation of an exogenous productivity stimuli, in terms of welfare. Further, we examine the differences between models based on a priori elasticity such as Leontief and Cobb-Douglas.
title Multifactor CES General Equilibrium: Models and Applications
topic Applications
General Finance
url https://arxiv.org/abs/1608.01365