Using a translog cost function and Brazilian firm level data, this article examines the degree of substitution between inputs. The two most important results of this analysis are that liquid assets do not generally substitute for either physical capital or labor and the monetary transmission mechanism operating through the Brazilian manufacturing sector is rather weak. The outcomes suggest changes in the Brazilian money supply will elicit only small substitution of money for either labor or physical capital.
|Number of pages||13|
|Journal||Quarterly Review of Economics and Finance|
|State||Published - 1994|