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The Review of Economics and Statistics Vol. 52 No. 2 1970

Labor Quality, Returns to Scale and the Elasticity of Factor Substitution

Gordon Philpot

Abstract

The problem was reduced to the apparently simple one of estimating the elasticity of substitution between capital and labor in the production functions of differing industries and determining whether these elasticities varied widely or were basically the same. After a lapse of eight years, however, the existence of factor reversal is still an unresolved question. In his 1967 summary article Marc Nerlove could write:

DOI
10.2307/1926121
Volume
52
Issue
2
Pages
194
Sources
openalex crossref

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