Output, Capital, and Labor in the Short and Long Run
Posted: 25 Feb 2005
I provide new empirical evidence on the relative importance of capital and labor in the determination of output in the short and long run. I find that capital is far more important factor than labor in the determination of output at the zero frequency band. Also, the zero-frequency labor elasticity of output might be close to zero, or even zero. Finally, output leads capital at the zero frequency band.
Keywords: Output, capital, labor, short run, long run, frequency domain, zero frequency
JEL Classification: C32, E22, E23, O40
Suggested Citation: Suggested Citation