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The capital-energy complementarity debate revisited

Journal Article · · American Economic Review; (USA)
OSTI ID:6958162
 [1]
  1. Univ. of Iowa, Iowa City (USA)
This paper argues that the empirical disagreement as to whether capital and energy are complements or substitutes is not likely to be reconciled with aggregate data. It demonstrates that price-induced changes in the composition of output can cause either outcome in the aggregate, even if no technical substitution is possible. Substitution by consumers and changes in the relative incomes of consumers and foreigners are identified as key factors in determining which outcome arises.
OSTI ID:
6958162
Journal Information:
American Economic Review; (USA), Journal Name: American Economic Review; (USA) Vol. 77:4; ISSN AENRA; ISSN 0002-8282
Country of Publication:
United States
Language:
English

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