On October 2, 2018 at 4:15 pm in Pettengill G21, Edouard Wemy from the Department of Economics of Clark University presented his talk on “Labor Income Share and the Relative Price of Investment in the U.S.”<\/p>\n
Talk Topics: > Did investment-specific technological progress play an important role in the growth\/decline of the secular trend of the labor share?<\/p>\n Abstract:<\/span> Sponsored by The Casey Lecture Fund for Economics<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" On October 2, 2018 at 4:15 pm in Pettengill G21, Edouard Wemy…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_hide_ai_chatbot":false,"_ai_chatbot_style":"","associated_faculty":[],"_Page_Specific_Css":"","_bates_restrict_mod":false,"_batesModPostContentOverride_prepend":false,"_batesModPostContentOverride_append":false,"_batesModPostContentOverride_append_before_footer":false,"_table_of_contents_display":false,"_table_of_contents_location":"","_table_of_contents_disableSticky":false,"_is_featured":false,"footnotes":"","_bates_seo_meta_description":"","_bates_seo_block_robots":false,"_bates_seo_sharing_image_id":0,"_bates_seo_sharing_image_twitter_id":0,"_bates_seo_share_title":"","_bates_seo_canonical_overwrite":"","_bates_seo_twitter_template":""},"categories":[1],"tags":[],"class_list":["post-2299","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/posts\/2299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/comments?post=2299"}],"version-history":[{"count":2,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/posts\/2299\/revisions"}],"predecessor-version":[{"id":2308,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/posts\/2299\/revisions\/2308"}],"wp:attachment":[{"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/media?parent=2299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/categories?post=2299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bates.edu\/economics\/wp-json\/wp\/v2\/tags?post=2299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/span>> Does the nature of the long-run relationship between the labor share and the relative price of investment co-integrate?<\/p>\n
\nUsing data from the United States, I perform an empirical analysis to assess the nature of the\u00a0long-run relationship between the labor share and the relative price of investment. Results from\u00a0co-integration tests reveals that the share and the relative price of investment are most likely not\u00a0co-integrated. However, co-variation tests indicate that both time series share a common stochastic\u00a0 component, and additional tests of structural breaks point at the presence of a common change in the mean or trend of both series. These results have important implication as they suggest that investment-specific technological progress – which is considered as the driving force of the long-run behavior of the relative price of investment – may have played an important role in the decline of\u00a0the secular trend of the labor share.<\/p>\n