RT Journal Article
T1 Normalizing VES production functions: extending the supply-side system approach
A1 Río Iglesias, Fernando del
A1 Rebelo, Francisco
K1 Variable elasticity of substitution (VES)
K1 Normalization
K1 Factor-Augmenting Technical Change
K1 Identification
K1 Capital-labour elasticity of substitution
K1 Normalized supply-side system
AB This paper extends the Klump et al. (2007) normalization procedure to Variable Elasticity of Substitution (VES) production functions. Normalization addresses identification issues in VES model estimation, allowing joint estimation of substitution elasticities and factor-augmenting technical change, while offering a tractable extension of the normalized supply-side system that bridges the gap between CES and more flexible VES specifications.
PB Elsevier
SN 0165-1765
YR 2026
FD 2026
LK https://hdl.handle.net/10347/45008
UL https://hdl.handle.net/10347/45008
LA eng
NO del Río, F., & Rebelo, F. (2025). Normalizing VES Production Functions: Extending the Supply-Side System Approach. Economics Letters, 112794. https://doi.org/10.1016/J.ECONLET.2025.112794
NO We acknowledge the financial support of the Spanish Ministry of Sciences and Innovation (PID2023-147667NB-I00) and Xunta de Galicia (GRC GI-2060 ED431C2023/05)
DS Minerva
RD 23 abr 2026