Standard postulates concerning the aggregate production function are about marginal productivities - and the associated demand of labor and capital - which are to be negatively related to factor prices, namely the wage rate and the profit rate. The theoretical cases in which these neoclassical properties do not hold are regarded as anomalies. We compute the aggregate values for capital, production and labour and find that the neoclassical postulates do not hold for the whole dataset under consideration.

Aggregate Production Functions and Neoclassical Properties: An Empirical Verification

Zambelli, Stefano
2014

Abstract

Standard postulates concerning the aggregate production function are about marginal productivities - and the associated demand of labor and capital - which are to be negatively related to factor prices, namely the wage rate and the profit rate. The theoretical cases in which these neoclassical properties do not hold are regarded as anomalies. We compute the aggregate values for capital, production and labour and find that the neoclassical postulates do not hold for the whole dataset under consideration.
Trento
Algoritmic Social Sciences Research Unit
Zambelli, Stefano
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/98295
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