The Substitution Elasticity, Factor Shares, and the Low-Frequency Panel Model
提出一种结合低通滤波与面板数据的新方法，估计劳动与资本间的替代弹性，发现标准方法存在40%至70%的下偏，修正后估计值为0.40，远低于柯布-道格拉斯假设的1。
The value of the elasticity of substitution between labor and capital (σ) is a crucial assumption in understanding the secular decline in the labor share of income. This paper develops and implements a new strategy for estimating this crucial parameter by combining a low-pass filter with panel data to identify the low-frequency/long-run relations appropriate to production function estimation. Standard estimation methods, which do not filter out transitory variation, generate downwardly biased estimates of 40 percent to 70 percent relative to the benchmark value. Despite correcting for this bias, our preferred estimate of 0.40 is substantially below the Cobb-Douglas assumption of σ = 1.