The study explores the empirical relationships between capital, labor and energy in the Israeli economy. The results - based on a transcendental cost function analysis - show that the substitutability between labor and energy increased until 1972, and from 1973 on it decreased. Energy and capital were complementary during 1955-1972; after 1973 this complementarity was weakened. Our results indicate that the Israeli Economy is quite responsive to changes in relative factor prices.
ASJC Scopus subject areas
- Environmental Science (all)
- Earth and Planetary Sciences (all)