Capital-labor substitution and economic efficiency
TL;DR: In this article, the authors proposed a method to improve the quality of the service provided by the service provider by using the information of the user's interaction with the provider and the provider.
Abstract: Обсуждаются следующие темы: чистая теория производства, функциональное распределение дохода, технический прогресс, источники международных конкурентных преимуществ. Анализируются эластичность замещения между трудом и капиталом в обрабатывающей промышленности; производственные функции различного типа.
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TL;DR: The authors verwenden Bayesian-and Frequentistischen Methoden um Modellunsicherheit zu adressieren, e.g., The authors, in der literatur im Durchschnitt auf etwa 0,9 geschatzt werden.
Abstract: Wir zeigen, dass die grose Substitutionselastizitat zwischen Kapital und Arbeit, die in der Literatur im Durchschnitt auf etwa 0,9 geschatzt wird, von drei Faktoren erklart werden kann: eine selektive Publikation konformer Ergebnisse, die Verwendung aggregierter Daten und die Nicht-Berucksichtigung der Bedingung erster Ordnung fur den Kapitaleinsatz. Die durchschnittliche Elastizitat bei Korrektur fur die selektive Publikation, bei Verwendung disaggregierter Daten und bei Einbezug der Bedingung erster Ordnung fur den Kapitaleinsatz betragt 0,3. Wir haben dafur 3.186 Schatzergebnisse aus 121 Studien ausgewertet und dazu 71 Variablen kodiert, die den Kontext der Studien reflektieren. Wir verwenden Bayesianische und Frequentistische Methoden um Modellunsicherheit zu adressieren. Zur Korrektur der selektiven Publikation, die bereits ungefahr die Halfte der Differenz zwischen 0,9 und 0,3 erklart, verwenden wir unter anderem nichtlineare Verfahren. In jedem Fall spricht die gesammelte Evidenz in der empirischen Literatur dafur, dass die Cobb-Douglas Spezifikation abgelehnt werden sollte.
19 citations
Cites background from "Capital-labor substitution and econ..."
...…of the elasticity of substitution was introduced in the 1930s, empirical estimates were only enabled by an innovation that came more than 20 years later: the introduction of the constant elasticity of substitution (CES) production function by Solow (1956), later popularized by Arrow et al. (1961)....
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...(4) Estimation of σ via first-order conditions was first suggested by Arrow et al. (1961)....
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...Estimation of σ via first-order conditions was first suggested by Arrow et al. (1961). The underlying assumptions involve constant returns to scale and fully competitive factor and product markets....
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...Although the concept of the elasticity of substitution was introduced in the 1930s, empirical estimates were only enabled by an innovation that came more than 20 years later: the introduction of the constant elasticity of substitution (CES) production function by Solow (1956), later popularized by Arrow et al. (1961). The CES production function can be written as...
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TL;DR: In this article, a game-theoretic model was developed to evaluate the environmental benefits of extended producer responsibility-based recycling systems with respect to product design-for-recycling and recycling technology improvements.
Abstract: W e study recycling technology choice, a critical factor that has received little attention in the context of extended producer responsibility, and its interaction with product design-for-recycling in driving the environmental benefits of recycling systems. Collective recycling systems have long been criticized for restricting the environmental benefits of extended producer responsibility because of free riding issues among producers, which can undermine incentives for product design-for-recycling. We revisit and refine this assertion by analyzing the interaction between recycling technology and product design-for-recycling choices. We develop game-theoretic models where producers and processors decide on product design-for-recycling and recycling technology choices, respectively. We then compare the equilibrium benefits of recycling in collective and individual systems. The key result in this study is that when recycling technology choice is taken into account, collective recycling systems can lead to higher environmental and economic benefits than individual recycling systems. This is because collective recycling systems provide stronger incentives for recycling technology improvements. In turn, these improvements can help overcome the drawbacks associated with inferior product designfor-recycling outcomes caused by free riding concerns among producers in collective recycling systems. In light of these results, we posit that an exclusive focus on product design-for-recycling to assess the environmental benefits of extended producer responsibility-based recycling systems may need scrutiny. Producers and policy makers may need to evaluate recycling systems with respect to the incentives they provide for both product design-for-recycling and recycling technology improvements.
19 citations
Additional excerpts
...1 frðx1; x2Þ ¼ minfx1; x2g (Arrow et al. 1961)....
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Journal Article•
TL;DR: In this paper, the Hessian determinants of composite functions of the form f(x) = F(h1(x1) + … + hn(xn)).
Abstract: The determinants of Hessian matrices of differentiable functions play important roles in many areas in mathematics. In practice it can be difficult to compute the Hessian determinants for functions with many variables. In this article we derive a very simple explicit formula for the Hessian determinants of composite functions of the form: f(x) = F(h1(x1) + … + hn(xn)). Several applications of the Hessian determinant formula to production functions in microeconomics are also given in this article.
19 citations
Cites background from "Capital-labor substitution and econ..."
...Solow [2] introduced another two-factor production function given by Q = F · (aK + (1− a)L) 1r , (2....
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19 citations
TL;DR: A critical overview of the development of the neoclassical theory of induced technical change can be found in this article. But they also show that such models are still unsatisfactory in a number of respects.
Abstract: This survey article provides a critical overview of the development of the neoclassical theory of induced technical change. From Hicks's introduction of the concept in his Theory of Wages up to the recent literature the strengths and weaknesses of the proposed models and the contexts in which they have been developed are outlined. It is shown that induced technical change has been invoked to explain various long-run distribution conundrums which could not be explained with standard neoclassical growth theory. The importance of induced technical change for the long-run distribution of income cannot be doubted. Nevertheless, we show that neoclassical models of induced technical change are still unsatisfactory in a number of respects.
18 citations
Cites background from "Capital-labor substitution and econ..."
...It also seems apposite to draw attention to the fact that production functions of the CES-type, now so widely used in theoretical and applied macroeconomic analyses, only began to enter into the toolbox of macroeconomists with the paper by Arrow et al. (1961)....
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References
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TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.
Abstract: В статье производится анализ агрегированной производственной функции, вводится аппарат, позволяющий различать движение вдоль такой функции от ее сдвигов. На основании сделанных в статье предположений делаются выводы о характере технического прогресса и технологических изменений. Существенное внимание уделяется вариантам применения концепции агрегированной производственной функции.
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01 Jan 1956TL;DR: In this paper, a very brief treatment of three questions relating to the history of our economic growth since the Civil War is given, namely: (1) How large has been the net increase of aggregate output per capita, and to what extent has this increase been obtained as a result of greater labor or capital input on the one hand and of a rise in productivity on the other? (2) Is there evidence of retardation, or conceivably acceleration, in the growth of per capita output? (3) Have there been fluctuations in the rate of growth of output, apart
Abstract: Introduction This paper is a very brief treatment of three questions relating to the history of our economic growth since the Civil War: (1) How large has been the net increase of aggregate output per capita, and to what extent has this increase been obtained as a result of greater labor or capital input on the one hand and of a rise in productivity on the other? (2) Is there evidence of retardation, or conceivably acceleration, in the growth of per capita output? (3) Have there been fluctuations in the rate of growth of output, apart from the shortterm fluctuations of business cycles, and, if so, what is the significance of these swings? The answers to these three questions, to the extent that they can be given, represent, of course, only a tiny fraction of the historical experience relevant to the problems of growth. Even so, anyone acquainted with their complexity will realize that no one of them, much less all three, can be treated satisfactorily in a short space. I shall have to pronounce upon them somewhat arbitrarily. My ability to deal with them at all is a reflection of one of the more important, though one of the less obvious, of the many aspects of our growing wealth, namely, the accumulation of historical statistics in this country during the last generation. For the most part, the figures which I present or which underlie my qualitative statements are taken directly from tables of estimates of national product, labor force, productivity, and the like compiled by others.
1,031 citations
903 citations