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The results show higher output elasticity and that all pairs of factor inputs are substitutes because of the higher level of substitution elasticities.
This paper therefore sets out to re-examine the relationship of the two variables using R&D output elasticity as a measure of R&D performance.
There have been many previous studies exploring the relationship between R&D performance and firm size; however, to our knowledge, this issue has never been examined in terms of R&D output elasticity.
Note the output elasticity of labour is 0.95.
α and β represent output elasticity of the labor force and that of the capital, respectively.
These results suggest that employment protection, similar to STW, reduces the output elasticity of permanent employment.
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They also indicate that output elasticities of capital, labour and useful energy are extremely variable over time.
Output elasticities of each factor and the substitution elasticities between these factors have been estimated and analyzed for the sample period of 1980 2013.
However, even though output elasticities are allowed to vary over time, it is constant within a period.
The parameters (alpha ) and (eta ) represent, respectively, the output elasticities relative to private capital and to productive government expenditure.
The absolute productivity, z, should satisfy 1=z(15)0.332(0.6)0.265(1.3)0.403, because the cost shares coincide with the output elasticities of the underlying Cobb Douglas production function.
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