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Wages, Capital Costs, and Employment in Manufacturing: A Model Applied to 1947-58 U.S. Data

Ronald I. McKinnon

Econometrica 1962

The choice of methods of production as related to factor costs is formulated differently from the ordinary production function by means of a particular activity set. Continuous factor substitutability is maintained in an ex ante sense. The resulting formulation is more amenable to existing data and is applied via a distributed lag model.

DOI
10.2307/1909893
Volume
30 (3)
Pages
501
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