Kim, Hyeongwoo and Thompson, Henry (2009): Factor Proportions Wages in a Structural Vector Autoregression.
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Factor proportions trade theory focuses on wage adjustments to product prices and factor endowments estimated directly for the first time in the present paper with a structural vector auto regression. Yearly data cover the US wage, labor force, fixed capital assets, and relative prices of services and manufactures from 1949 to 2006. This model with only capital and labor inputs is inconsistent with the evidence leading to the addition of energy input. Energy has a stronger wage impact than capital, labor is revealed as the middle factor in the intensity ranking, and results suggest a high degree of substitution.
|Item Type:||MPRA Paper|
|Original Title:||Factor Proportions Wages in a Structural Vector Autoregression|
|Keywords:||Wage; Factor Proportions; Structural Vector Autoregression; Impulse Response Functions|
|Subjects:||F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade|
|Depositing User:||Hyeongwoo Kim|
|Date Deposited:||11. Oct 2009 07:19|
|Last Modified:||22. Feb 2013 04:57|
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