Estimates of the Long-Run Growth Rate of Australia

Authors


Correspondence: Sriram Shankar, School of Economics and Finance, University of Western Sydney, Sydney, Australia. Email: S.Shankar@uws.edu.au

Abstract

This short note estimates using the Kmenta's (1967) approximation, a constant elasticity of substitution (CES) production function for Australia for 1960–2004. It is found that the elasticity of substitution is 2.44, technical progress is capital augmenting and the steady-state growth rate (SSGR) of Australia is about 0.34%.

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