EMPIRICAL EVIDENCE ON DIVERSE FACTOR SHARES ACROSS EU COUNTRIES

• Authors: Sivák Rudolf , Čaplánová Anetta , Holková Vieroslava , Hofreiter Miloš
• Languages of publication: EN

Abstracts

EN

The paper challenges the traditional assumption of stable factor shares introduced in the Cobb-Douglas production function. We analyse factor shares for 20 EU countries among 1995 – 2015 and find evidence for differences in labour shares across both countries and time. On the example of Slovakia, we demonstrate the impact of using different factor shares on output gap estimates quantified to reach up to 0.6 percentage points. Our research also confirms a positive correlation between the degree of economic development and relative labour shares.

Keywords

EN

COBB-DOUGLAS PRODUCTION FUNCTION; FACTOR SHARES; OUTPUT GAP; EUROPEAN UNION; SLOVAKIA

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2019
• Volume: 67
• Issue: 8
• Pages: 857 – 878

Contributors

author

Sivák Rudolf

• University of Economics in Bratislava, Faculty of National Economy, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic

author

Čaplánová Anetta

author

Holková Vieroslava

author

Hofreiter Miloš