Wilde, Joshua (2012): How Substitutable are Fixed Factors in Production? Evidence from Pre-industrial England.
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Whether fixed factors such as land constrain per-capita income growth depends crucially on two variables: the substitutability of fixed factors in production, and the extent to which innovation is biased towards land-saving technologies. This paper attempts to quantify both. Using the timing of plague epidemics as an instrument for labor supply, I estimate the elasticity of substitution between fixed and non-fixed factors in pre-industrial England to be significantly less than one. In addition, I find evidence that denser populations – and hence higher land scarcity – induced innovation towards land-saving technologies.
|Item Type:||MPRA Paper|
|Original Title:||How Substitutable are Fixed Factors in Production? Evidence from Pre-industrial England|
|Keywords:||Land, Industrial Revolution, Induced Innovation, Fixed Factors, Substitutability, Population, England, Plagues|
|Subjects:||J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility; Family Planning; Child Care; Children; Youth
N - Economic History > N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations > N13 - Europe: Pre-1913
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q24 - Land
N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries > N53 - Europe: Pre-1913
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General
N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N33 - Europe: Pre-1913
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
|Depositing User:||Joshua Wilde|
|Date Deposited:||05. Jul 2012 11:20|
|Last Modified:||17. Feb 2013 05:13|
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How substitutable are fixed factors in production? evidence from pre-industrial England. (deposited 06. Jun 2012 15:34)
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