Replication data for: The Substitution Elasticity, Factor Shares, and the Low-Frequency Panel Model

Debdulal Mallick & Robert S. Chirinko
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...
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