Abstract

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Title:: Estimation of elements output elasticity in China’s first industry based on time varying parameter

Author(s):: WANG Yu-mei; RUI Yuan; LIN Qing-xia; School of Statistics and Applied Mathematics, Anhui University of Finance Economics

Keywords:: state space model; MRW production function; elements output elasticity; Kalman filter; the first industry

Abstract:: Based on state space model, this paper estimated the time varying elasticity MRW production function by using Kalman filter algorithm and analyzed the output elasticity of all the elements in China’s first industry from 1978 to 2012. The results showed: in the case of China’s existing material capital utilization level and investment speed, output elasticity of physical capital in the first industry constantly declined; output elasticity of educational capital also showed a trend of decline with the improvement of the education level of employed people; despite the fact that labor force presented a trend of increasing first and decreasing followed, output elasticity of labor force in the first industry was rising over time.