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The European Physical Journal B

, Volume 66, Issue 2, pp 279–287 | Cite as

Cointegration of output, capital, labor, and energy

  • R. StresingEmail author
  • D. Lindenberger
  • R. Kümmel
Interdisciplinary Physics

Abstract

Cointegration analysis is applied to the linear combinations of the time series of (the logarithms of) output, capital, labor, and energy for Germany, Japan, and the USA since 1960. The computed cointegration vectors represent the output elasticities of the aggregate energy-dependent Cobb-Douglas function. The output elasticities give the economic weights of the production factors capital, labor, and energy. We find that they are for labor much smaller and for energy much larger than the cost shares of these factors. In standard economic theory output elasticities equal cost shares. Our heterodox findings support results obtained with LINEX production functions.

PACS

89.65.Gh Economics; econophysics, financial markets, business and management 05.45.Tp Time series analysis 

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Copyright information

© EDP Sciences, SIF, Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  1. 1.Institute for Theoretical Physics and Astrophysics, University of WürzburgWürzburgGermany
  2. 2.Institute of Physics and Center for Environmental and Sustainability Research, University of OldenburgOldenburgGermany
  3. 3.Institute of Energy Economics, University of CologneCologneGermany

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