Elasticity of substitution between public and private capital: Evidence from manufacturing firms in Europe

被引：2
|
作者：
An, Zidong [1 ]
Zhang, Feinan [2 ]
Li, Haibo [1 ,3 ]
机构：
[1] Renmin Univ China, Sch Appl Econ, Beijing, Peoples R China
[2] Heilongjiang Prov Acad Social Sci, Heilongjiang, Peoples R China
[3] Univ China, 59 Zhongguancun St, Beijing 100872, Peoples R China
来源：
ECONOMICS LETTERS | 2022年 / 219卷
关键词：
Elasticity of substitution; Production function; Public capital; Crowd-in effect; CONSTANT-ELASTICITY;
D O I：
10.1016/j.econlet.2022.110780
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Most macroeconomic models either assume that public and private capital are perfectly substitutable in the production process or they are combined under a Cobb-Douglas type production function. Using post-crisis data from European manufacturing firms, this letter finds the elasticity of substitution between public and private capital to be 3.45, suggesting these widely used assumptions are invalid. Besides, firms with higher dependence on external financing tend to have a higher elasticity of substitution. (C) 2022 Elsevier B.V. All rights reserved.
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页数：3
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