The Labour Input Response to Permanent Changes in Output: An Errors‐in‐Variables Analysis Based on Panel Data

Autor:	Erik Biørn, Tor Jakob Klette
Rok vydání:	1999
Předmět:	Economics and Econometrics Returns to scale Econometrics Economics Production (economics) Errors-in-variables models sense organs Latent variable Panel data
Zdroj:	The Scandinavian Journal of Economics. 101:379-404
ISSN:	1467-9442 0347-0520
DOI:	10.1111/1467-9442.00162
Popis:	Using panel data for Norwegian manufacturing, we revisit ‘the increasing returns to scale puzzle’ for labour inputs. We consider the response of the input of white-collar workers, blue-collar workers, and blue-collar worker hours to permanent changes in output. Permanent and temporary changes in output are treated as latent variables. We compare OLS, IV, and GMM estimates of the response elasticities and conclude that the distinction between permanent and temporary changes is essential. Our GMM estimates suggest that the ‘increasing returns to scale puzzle’ remains for all measures of the labour input also when we consider their response to permanent changes in output. For materials, the output response indicates approximately constant returns to scale. This suggests non-homotheticity of the production technology. JEL classification: C23; J23
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ee2da56f8c8b626199b96094a0b9c98e https://doi.org/10.1111/1467-9442.00162 Zobrazit plný text záznamu Plný text ve formátu PDF