Tipo di tesi
Tesi di laurea magistrale
Titolo
INEQUALITIES IN THE LONG RUN: ESTIMATING THE ELASTICITY OF SUBSTITUTION
Dipartimento
ECONOMIA E MANAGEMENT
Parole chiave
- elasticity of substitution
- income inequalities
- Indirect Inference
- nested CES production function
Data inizio appello
06/07/2020
Consultabilità
Non consultabile
Data di rilascio
06/07/2090
Riassunto (Italiano)
In this work, I analyse the raising of income inequalities arising from "new technological progress", which seems to establish a complementarity relation between physical capital and skilled employment, while the "smart portion" of the production sector seems to be in a substitutability relation with unskilled employment. In order to study capital-skill complementarity, I start from a deepen analysis of the CES production function developed by Arrow, Chenery, Minhas and Solow (1961), considering the more complex environment of the so-called "nested" CES production function. To estimate capital-skill complementarity, I propose a new methodology based on the Indirect Inference (Gouriéroux et al., 1993), which I validate with a Monte Carlo experiment. Finally, the work contains the results of the estimation of the nested CES production function for a set of benchmark countries. One of the results is that the usual theoretical framework developed in the literature is not able to capture income inequalities dynamics.
