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.
Citations
More filters
13 citations
01 Aug 2021
TL;DR: In this paper, the authors proposed the Energy Efficient Constant Elasticity of Substitution (EE-CES) production function to model the aggregate production process in Nigeria while taking energy-use as a capitaldependent input factor.
Abstract: To reduce fossil energy consumption and mitigate carbon emission in an economy, it is important to examine the energy use of the physical capital factor input, taking the Nigerian production process as an example, given that Nigeria is the largest economy in Africa by Gross Domestic Product (GDP), Purchasing Power Parity (PPP), Population, etc. On the other hand, while existing literature assumes energy-use as an independent factor input, this article argues that energy-use is a dependent factor input in a production function relationship. Therefore, this paper seeks to model the production processes differently, by considering energy-use as a dependent factor input of production. Hence, the Energy Efficient Constant Elasticity of Substitution (EE-CES) production function is proposed to model the aggregate production process in Nigeria while taking energy-use as a capital-dependent input factor. The Indirect Least Square (ILS) results show a 19% actual capital energy-efficient level in Nigeria. The marginal productivity of energy-efficient capital exceeds that of labour and energy-inefficient capital. The Nigerian factor inputs exhibit increasing returns to scale with a homogenous of degree three-second. On average, the Nigerian production process is more labour intensive than capital intensive. Therefore, conscious efforts are required to simultaneously make the Nigerian production process more capital-intensive and improve the energy-efficiency of the capital input. The implication of this study is not peculiar to Nigeria but includes other developing economies, mostly African economies, with a more labour-intensive production system.
13 citations
Posted Content•
TL;DR: In this paper, the authors developed a cost methodology that integrates urban climate modelling with labour productivity and economic production to assess the costs of heat stress on city economies either currently or under future climate change scenarios.
Abstract: Cities are particularly vulnerable to heat waves. Despite this, no comprehensive methodology has been developed to assess the costs of heat stress on city economies either currently or under future climate change scenarios. Here, we develop a cost methodology that integrates urban climate modelling with labour productivity and economic production. It is designed to be tailored by policy makers and transferable from one city to another. As such it provides a potentially powerful policy tool for assessing the exposure of different economic sectors and the key mechanisms resulting in urban production losses under climate change. Results show that the impacts of heat on the urban economy are highly variable and depend on characteristics of production, such as the elasticity of substitution between capital and labour, and the relative size of different sectors in the economy. We estimate that in a warm year in the far future (2081-2100), the total losses to the urban economy could range between 0.4% of Gross Value Added (GVA) for London and 9.5% for Bilbao in the absence of adaptation. The averted losses due to adaptation measures such as behaviour change, air conditioning, ventilation, insulation and solar blinds range from -€114 million to over €2.3 billion. The methodology demonstrates the substantial impact that climate change could have on different sectors of the city economy, such as the financial services industry in London.
12 citations
Posted Content•
TL;DR: In this article, the optimal skill mix in a model with two kinds of imperfectly substitutable labor, skilled and unskilled, is analyzed, and the market and optimal rules are characterized and compared.
Abstract: In this paper, we analyze the optimal skill mix in a model with two kinds of imperfectly substitutable labor, skilled and unskilled. The population is characterized by a distribution of innate abilities, and individuals are trained according to optimal rules or market rules (with imperfect expectations); the length of each individual's training period depends upon his innate ability. The market and optimal rules are characterized and compared, and corrective policies are investigated. This model represents a major advance over earlier models, which are based on the following assumptions: (a) either unskilled and skilled labor are perfectly substitutable or training is a necessary condition for employment; (b) individuals are innately identical; (c) in most cases, training occurs either instantaneously or with fixed lag.PDF Version: Sethi, S. P. and T. W. McGuire, "Optimal Skill-Mix: An Application of the Maximum Principle for Systems with Continuous Lags," W. P. # 46-71-2, GSIA, Carnegie-Mellon University, November 1971.
12 citations
Cites background from "Capital-labor substitution and econ..."
...An important class of functions satisfying the assumptions listed above is the class of constant elasticity of substitution (CES) production functions F[xo(t), x~(t)] = {6 [~-~Co(t)] -~ + (1 - 6)[¢r~x~(t)]-~} -1/~, (11) where 6 is a distribution parameter independent of o....
[...]
...When cr = 0o in the production function (11), the production function is not differentiable along the ray ~roXo(t) = ~ r ~ ( t ) ; (55)...
[...]
...Another case, which deserves mention, because of its extensive treatment in the economics literature, although it is not qualitatively different from the general case for our purposes, is the celebrated CobbDouglas production function, obtained by taking the limit of (11) as o- ~ 0....
[...]
TL;DR: In this article, an analytical procedure for evaluating trade-offs in biological productivity in intercropping experiments is presented, based on the motion of production possibility curves from economics literature, and the proposed index is similar to the Land Equivalent Ratio (LER) in its interpretation but overcomes some of the weaknesses of the LER.
12 citations
References
More filters
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.
10,850 citations
3,961 citations
Book•
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