Estimation of a production function with domestic and foreign capital stock

Research output: Working paper / PreprintWorking paper

38 Downloads (Pure)

Abstract

We estimate a Cobb-Douglas production function distinguishing between a domestic and a foreign capital stock built from data of imported machinery and transport equipment for Brazil. The preferred regression uses log levels estimated by GMM-HAC. Results are that the elasticity of production of foreign capital is about 40% of that of domestic capital, the function has constant returns to scale in capital and labour variables, and human capital and technical change are also highly productive.
Original languageEnglish
PublisherUNU-MERIT
Number of pages8
Publication statusPublished - 2022

Publication series

SeriesUNU-MERIT Working Papers
Number002
ISSN1871-9872

JEL classifications

  • c22 - "Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models"
  • c51 - Model Construction and Estimation
  • e23 - Macroeconomics: Production
  • f43 - Economic Growth of Open Economies
  • o54 - "Economywide Country Studies: Latin America; Caribbean"

Keywords

  • time-series
  • estimation
  • Production function
  • open economy
  • Brazil

Fingerprint

Dive into the research topics of 'Estimation of a production function with domestic and foreign capital stock'. Together they form a unique fingerprint.

Cite this