We show that the large elasticity of substitution between capital and labor estimated in the literature on average, 0.9, can be explained by three factors: publication bias, use of aggregated data, and omission of the first-order condition for capital. The mean elasticity conditional on the absence of publication bias, disaggregated data, and inclusion of information from the first-order condition for capital is 0.3. To obtain this result, we collect 3,186 estimates of the elasticity reported in 121 studies, codify 71 variables that reflect the context in which researchers produce their estimates, and address model uncertainty by Bayesian and frequentist model averaging. We employ nonlinear techniques to correct for publication bias, which is responsible for at least half of the overall reduction in the mean elasticity from 0.9 to 0.3. Our findings also suggest that a failure to normalize the production function leads to a substantial upward bias in the estimated elasticity. The weight of evidence accumulated in the empirical literature emphatically rejects the Cobb-Douglas specification.

A key parameter that determines the distributional impacts of a policy shift in general equilibrium simulations is the elasticity of substitution between capital and labor. Using a rich new data set by the Bureau of Economic Analysis, we estimate substitution elasticities for 28 industries and provide an indication of the long- and short-run estimates. Given the structure of most growth models, we posit that the relationship between capital and labor is likely to be close to Cobb-Douglas. Our findings lend support to the Cobb-Douglas specification as a transparent starting point in simulation analysis.

The transport sector is a key engine of Bangladesh's quick oil demand growth. It accounted for 64.4% of overall Bangladesh oil consumption in 2019 and is, therefore, a third contributor to CO₂ emissions and related pollutants. The substitutability of energy and non-energy factors is the key issue in framing and planning energy policies. Therefore, we determine a translog production function for the transport sector, including inputs labor, capital and energy. The research analyzes factor output and substitution possibilities from 1990 to 2019. Outcomes show (a) labor output elasticity is higher, followed by energy and capital. (b) All the substituting factors are rising return to scale, with relatively high substitution (around 1.63-2.05, 1.05-1.06, 0.77-0.92) between capital-labor, capital-energy and labor-energy, which proposes that the substitution between capital-labor and capital-energy could be attained through updating technology. Therefore, by giving maximum capital to the transport sector, appropriate energy-conserving technology could be maximally encouraged, and capital-energy substitutability would have better results in the future. (c) Though, technical progress is calculated to be between 0.009 and 0.14 between the various inputs. The input labor-energy is quicker substitutes with their relative difference in technological progress, while capital also presents proof of convergence. By assigning additional capital to the transport sector, energy-saving technologies could be enhanced and CO₂ emissions reduction could be achieved. Finally, advancement in capital and skilled labor and, thus, substitution between energy-labor and the transition of labor-capital can be achieved.

The productivity in the Nigeria’s mining sector presents significance challenges, especially in view of its prospect in diversifying the national economy. The need to uncover the efficiency by way of estimating two major production functions (i.e. capital and labor) cannot be minimized. However, this paper uses econometric technique to estimates the Cobb-Douglas production function of mining sector between 1980 and 2011 periods in Nigeria. To avoid a spurious series, unit root test was conducted based on Augmented Dickey-Fuller (ADF) to test for the stationarity or otherwise of the variables in the model. The outcome reveals that the substitution parameters α and β (substitution parameters for capital and labor) confirms the a priori expectation that the pair of α and β are positive values. Despite labor is the most significant factor of production, the study also found that other inputs such as innovations and technology are positively significant in this period of modern mining production processes in view of the global economic outlook. The study amongst others recommends strong political will of government, transparency and accountability to drive efficient and effective mining sector reform, increased capital investment in innovations, technology, and raw materials.

Introduction. One of the goals of macroeconomic policy of any country is to achieve high economic results, improve the living standards of the population and satisfy their unlimited needs in conditions of limited economic resources, and solve the socio-economic problems of the country related to its economic development. Therefore, economic growth is important for Ukraine, as well as for other countries in the world, because it will give it the opportunity to develop, create a strong economy, and enter global business as a full-fledged competitor and partner. Methods. In the research process, a historical-logical method was used, which made it possible to explore the essence of economic growth. Comparative analysis was used to compare approaches to the study of economic growth and to review publications. The study of GDP dynamics was carried out using the dialectical method. The study used statistical information from the State Statistics Service of Ukraine for the period 2010-2023. The main source of information is the section of the statistical yearbook "National Accounts of Ukraine" on the website of the State Statistics Service of Ukraine, which contains information on GDP and population. Correlation-regression analysis was used to construct and analyze the Cobb-Douglas production function of GDP dependence on the volume of fixed assets and labor productivity in the form of a regression equation Y = 1489K0,13775 L0,93478, which provides an estimate of the strength of the

The purpose of the analysis is to assess the impact of the crisis on the potential output and output gaps, to study their evolution by using a comparative approach for a sample of EU countries that were in majority included recently in financial assistance and macroeconomic adjustment programmes. The potential GDP growth rates calculated using the Cobb Douglas production function and Hodrick-Prescott methodology, decelerated substantially across the board in the countries studied once the international economic and financial crisis hit, recording even negative rates of growth in Cyprus, Greece, Portugal, Italy and Spain. In addition to the specific factors that characterise each country, there is a series of common features that will affect the developments of the potential GDP on a long-term basis, such as the increase of global risk aversion correlated with the reduction of the banking exposures, the slow economic recovery in the EU, and last but not least the incoming ageing process, which will exert an additional negative impact on the growth potential of the EU member states. The article makes a series of economic policy recommendations to promote key measures aiming to increase the flexibility of the goods, services, and labour markets, to improve the prioritisation of public expenditures especially capital spending, and to improve the management of the public assets including real estate and public buildings by promoting a mix of measures including privatisation, monet

The purpose of the analysis is to assess the impact of the crisis on the potential output and output gaps, to study their evolution by using a comparative approach for a sample of EU countries that were in majority included recently in financial assistance and macroeconomic adjustment programmes. The potential GDP growth rates calculated using the Cobb Douglas production function and Hodrick-Prescott methodology, decelerated substantially across the board in the countries studied once the international economic and financial crisis hit, recording even negative rates of growth in Cyprus, Greece, Portugal, Italy and Spain. In addition to the specific factors that characterise each country, there is a series of common features that will affect the developments of the potential GDP on a long-term basis, such as the increase of global risk aversion correlated with the reduction of the banking exposures, the slow economic recovery in the EU, and last but not least the incoming ageing process, which will exert an additional negative impact on the growth potential of the EU member states. The article makes a series of economic policy recommendations to promote key measures aiming to increase the flexibility of the goods, services, and labour markets, to improve the prioritisation of public expenditures especially capital spending, and to improve the management of the public assets including real estate and public buildings by promoting a mix of measures including privatisation, monet

aggregate production function, often specified to be of Cobb–Douglas type, which enables the model "to make contact with microeconomics". The model was The Solow–Swan model or exogenous growth model is an economic model of long-run economic growth. It attempts to explain long-run economic growth by looking at capital accumulation, labor or population growth, and increases in productivity largely driven by technological progress. At its core, it is an aggregate production function, often specified to be of Cobb–Douglas type, which enables the mode The Solow–Swan model or exogenous growth model is an economic model of long-run economic growth. It attempts to explain long-run economic growth by looking at capital accumulation, labor or population growth, and increases in productivity largely driven by technological progress. At its core, it is an aggregate production function, often specified to be of Cobb–Douglas type, which enables the model "to make contact with microeconomics". The model was developed independently by Robert Solow and Trevor Swan in 1956, and superseded the Keynesian Harrod–Domar model. Mathematically, the Solow–Swan model is a nonlinear system consisting of a single ordinary differential equation that models the evolution of the per capita stock of capital. Due to its particularly attractive mathematical characteristics, Solow–Swan proved to be a convenient starting point for various extensions. For instance, in 1965, David Cass and Tjalling Koopmans integrated Frank Ramsey's analysis of consumer optimization, thereby endogenizing the saving rate, to create what is now known as the Ramsey–Cass–Koopmans model. Average…

Estimates of the output elasticity of public capital in Japan vary widely across studies, reflecting differences in data structure, regional coverage, infrastructure type, model specification, and econometric treatment. This paper synthesizes the Japanese evidence through a meta-regression analysis of 993 reported elasticity estimates drawn from 44 studies published over the past four decades. The meta-sample is restricted to comparable Cobb–Douglas production-function estimates in which public capital enters the estimating equation directly and sampling uncertainty can be recovered. The FAT–PET–PEESE results provide no statistically significant evidence of publication bias and yield a positive but modest publication-bias-adjusted average reported elasticity of 0.094. An unrestricted model and a parsimonious theory-driven specification identify systematic heterogeneity in the literature. Studies incorporating neighboring infrastructure stocks into regional infrastructure measures report larger elasticities, whereas studies explicitly addressing the endogeneity of public capital report smaller elasticities. These associations are preserved under alternative weighting schemes. Metropolitan coverage is positively associated with reported elasticities, while social infrastructure and more recent sample periods are negatively associated with them under precision weighting, although these patterns are less robust to alternative estimators. By integrating a large body of Japanese-language evidence, the analysis shows that reported public-capital elasticities depend materially on spatial measurement, econometric identification, regional and sectoral context, and sample period. Japan’s experience also provides evidence on infrastructure productivity as a mature economy shifts from network expansion toward maintenance and renewal.

The rebound effect exists widely in the fields of energy, irrigation, and other resource utilizations. Previous studies have predicted the evolution of different resource utilizations under the shared socioeconomic pathways (SSPs), but it is still unclear whether total water use has a rebound effect. This study uses the SSPs as the basic prediction framework and evaluates the water resources and economic status of the provinces in China using the hydro-economic (HE) classification method. Then, combined with the SSPs scenario setting parameters, the conditional convergence model and the method recommended by the Food and Agriculture Organization of the United Nations (FAO) are used to simulate the changes in water use efficiency of the different provinces in China under different scenarios. Based on the future GDP forecast data of China’s provinces, combined with the forecast of water use efficiency changes, the total water use changes in China’s 31 provinces under different pathways from 2016 to 2030 are calculated. Among them, the future GDP data is predicted based on the Cobb–Douglas production function and SSPs scenario settings. Using a comprehensive evaluation of the evolution of the efficiency and the total amount, this study reveals whether there is a rebound effect. The results showed that with the continuous growth in the water use efficiency, the total water use had a “U” type trend, which indicated that there was a rebound effect in the total water use of China un