This note demonstrates that it is still possible to identify the economy's technology from national income accounting data when wages are set through a bargaining process rather than the usual competitive mechanism. Applying the method to US data, we obtain that the output elasticity with respect to capital exceeds 0.5.
Bibliographical noteFunding Information:
We are thankful to the DFG for financial support through the SFB 649. The comments of a referee have greatly helped us to clarify our point.
- Factor shares
- Nash bargaining
ASJC Scopus subject areas
- Economics and Econometrics