Identifying the elasticity of substitution with biased technical change: a structural panel GMM estimator
有偏技术进步下替代弹性的识别:结构面板 GMM 估计
Summary: This paper provides a structural panel GMM (P-GMM) estimator of the elasticity of substitution between capital and labour that does not depend on external instruments, and which can be applied in the presence of biased technical change. We identify the conditions under which P-GMM is a consistent estimator and compare it to a fixed effects estimator. Using a Monte Carlo study, we find that the P-GMM estimator is nearly unbiased provided the number of time periods…