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Article
Marshall's Rules with Aggregate Inputs
Economics Bulletin (2011)
  • Alberto Behar, World Bank
Abstract
We establish the formal link between the separability of inputs in a production function and the aggregate elasticity of demand for those inputs. This validates the implicit assumption used when calculating an aggregate elasticity with aggregated input prices and provides a practical approach to calculating an aggregate elasticity when one has disaggregated prices. We illustrate the approach to add to a thin empirical literature on labor demand elasticities in developing countries by using South African data.
Disciplines
Publication Date
2011
Citation Information
Alberto Behar. "Marshall's Rules with Aggregate Inputs" Economics Bulletin (2011)
Available at: http://works.bepress.com/alberto_behar/28/