Abstract
The production function regression models with time-varying elasticity coefficients are studied. The local linear weighted least squares estimators for time-varying elasticity coefficient functions are provided by the local polynomial regression method. For the real data example of China, the time-varying properties of the elasticity coefficients are studied. By the generalized likelihood ratio test, the capital output elasticity and the labor output elasticity in China are not constants but the nonlinear functions of the time in the period of 1981-2004. The capital output elasticity varies from 0.21 to 0.68. The labor output elasticity varies from 0.44 to 0.89, and the return to scale varies from 0.89 to 1.14.
| Original language | English |
|---|---|
| Pages (from-to) | 144-149 |
| Number of pages | 6 |
| Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
| Volume | 29 |
| Issue number | 4 |
| State | Published - Apr 2009 |
| Externally published | Yes |
Keywords
- Generalized likelihood ratio test
- Local polynomial regression
- Production function
- Time-varying elasticity coefficients
- Varying-coefficient models