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: In this paper, the authors show that the CES-complementarity is maximized if the age difference between the authors is about 10 years, and that older and younger researchers differ not only in their skill levels but also in the types of their skills and their interpersonal relationships.
Abstract: I model research quality as the outcome of a CES production technology that uses human capital measured by publication records as inputs. Investigating a sample of scientific publications with two co-authors, I show that the CES-complementarity parameter is a function of the age difference of the authors. Complementarity is maximized if the age difference between the authors is about 10 years. Two theories are presented which may explain this finding. According to these models, older and younger researchers differ not only in their skill levels but also in the types of their skills and their interpersonal relationships.
9 citations
TL;DR: In this paper, the authors describe the theory, computation and results of a multi-period general equilibrium model designed to assist an urban water authority in its pricing and investment decisions, including gestation periods in the creation of dams, main sewers and treatment plants.
Abstract: We describe the theory, computation and results of a multiperiod general equilibrium model designed to assist an urban water authority in its pricing and investment decisions. The model includes gestation periods in the creation of dams, main sewers and treatment plants. It allows for lumpy capital items and recognizes cost differences in the provision of services in peak and non-peak times. Its general equilibrium framework is convenient for handling links between the water authority and the rest of the economy, especially the housing sector. We have used two computational approaches. In the first, we reformulate the model as a single-entity optimization problem and then apply a linear programming package. We have found that a better approach is to apply Newton-Raphson methods to a formulation of the model as a set of equations depicting purely competitive behaviour in all productive activities. A special feature of this paper is an integration of the model's results, obtained under the assumption of certainty, with data on weather-induced variations in streamflow and demand. Using Monte Carlo techniques we assess the risks of water shortages associated with the investment and pricing strategies that our model indicates.
9 citations
TL;DR: In this paper, four types of relationships constituting an economic model of production are specified in order to deduce the mathematical form of the production function, and the derived production function is seen to fall into the widely discussed CES-VES family.
Abstract: Four types of relationships constituting an economic model of production are specified in order to deduce the mathematical form of the production function. A technical equation restricts the production function to be a member of the homogeneous class. A behavioral equation describes the profit-maximizing character of the producer. An empirical equation attempts to explain the average productivity of labor. Finally a demand function reflects the structure of the output market. The derived production function is seen to fall into the widely discussed CES-VES family. The economic model thus in a sense provides a theoretical basis for the CES-VES production functions. The economic properties of the derived production function are also studied in detail and alternative estimation procedures are reviewed critically.
9 citations
TL;DR: In this article, the real options approach for entry-exit decision making with Dixit's (1989) model under exchange rate uncertainty was adopted for valuing the behavior of the transferable location and a closed form solution of the threshold value, sensitivity analysis, and some characteristics of optimal production strategy were sought.
Abstract: The Cobb–Douglas production function with Abel's (1983) model is extended herein, and real options approach for entry–exit decision making with Dixit's (1989) model under exchange rate uncertainty. A general form with the first order of degree homothetic production functions is also considered by the rule of decision.making in the proposed model. The firm is risk neutral and this study adopts the real options approach for valuing the behavior of the transferable location. Furthermore, a closed form solution of the threshold value, sensitivity analysis, and some characteristics of optimal production strategy are sought, providing for another way of thinking.
9 citations
Cites background or methods from "Capital-labor substitution and econ..."
...The batch Process Model pro duces output according to a constantly elastic substitution production function in domestic (foreign), see Arrow et al. (1961), and Eisner and Nadiri (1968)....
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...First (a) HCES is the second term on the right of (2) and is the expense costs....
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...(2) In CES Batch Process Model: The value of exporter's domestic production is...
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...First (a), the value of exporter's domestic production is a linear function of the real exchange rate and the second term, on the right-hand side of (2), measures cost expenses...
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...Given a fixed CES productive function and production \Vs' the minimal cost expense is obtained as (l/r) times the second term on the right-hand side of (2) using the Principle of Duality....
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TL;DR: In this paper, the authors demonstrate novel econometric methods to estimate input-mix efficiency (IME) in a parametric framework, defined as "input mix efficiency" (IME).
Abstract: This paper contributes to the productivity literature by demonstrating novel econometric methods to estimate input-mix efficiency (IME) in a parametric framework. Input-mix efficiency is defined as...
9 citations
Cites background from "Capital-labor substitution and econ..."
...The CES aggregator is a generalized form which encompasses various other forms of aggregators (e.g., Lowe, Cobb–Douglas) as special cases (see Arrow et al. 1961, 230)....
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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.
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903 citations