Sector-wise productivity growths are measured, along with the sectoral elasticity of substitutions, under the multi-factor CES framework, by regressing the growths of factor-wise cost shares against the growths of relative factor prices. We use linked input-output tables for Japan and  Korea as the data source for factor price and cost shares in two timely distant states. We then construct a multi-sectoral general equilibrium model using the system of estimated CES unit cost functions, and evaluate the economy-wide propagation of an exogenous productivity gain , in terms of welfare. Further, we examine the differences between models based on a priori elasticities such as Leontief and Cobb-Douglas.
Sector specific multifactor CES elasticity of substitution and the corresponding productivity growths are jointly measured by regressing the growths of factor-wise cost shares against the growths of factor prices. We use linked input-output tables for Japan and the Republic of Korea as the data source for factor price and cost shares in two temporally distant states. We then construct a multi-sectoral general equilibrium model using the system of estimated CES unit cost functions, and evaluate the economy-wide propagation of an exogenous productivity stimuli , in terms of welfare. Further, we examine the differences between models based on a priori elasticity such as Leontief and Cobb-Douglas.
R
Sector-wise
Sector specific multifactor CES elasticity of substitution and the corresponding
R
measured, along with the sectoral elasticity of substitutions, under the multi-factor CES framework,
jointly measured
D
relative
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the Republic of
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timely
temporally
R
gain
stimuli
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elasticities
elasticity