Estimates of the Long‐Run Growth Rate of Australia

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%.