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This document analyzes the effect of using two-level nested CES production functions on structural change in the US economy from 1987-2016. It models three different two-level nested CES functions that include energy as a primary factor of production, in addition to capital and labor. It estimates the parameters of these functions for the manufacturing and services sectors using nonlinear least squares. Comparing the two-level nested CES functions to a traditional one-level nested CES function may provide f

Author

Ufka Yolculuk

Language

EN