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: This paper developed a model of teacher effectiveness and detailed the conditions that determine joint-aim appraisal systems' contribution to teacher productivity, and then simulated the long-term effects of a set of teacher evaluation policies.
8 citations
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...Readers may recognize the similarities between this model of improvement from evaluation and Arrow et al.’s (1961) specification of the constant elasticity of substitution (CES) function....
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TL;DR: In this article, a history of learning by doing is presented, showing how its context of discovery conditioned its form, the concepts Arrow used and the way he defined them, and the modeling strategy he employed.
Abstract: Kenneth J. Arrow's 1962 article “The Economic Implications of Learning by Doing” is considered a seminal contribution to endogenous growth theory. However, no history of its origins has been written yet. We aim to fill this gap by studying the genesis of Arrow's article, showing how its context of discovery conditioned its form, the concepts Arrow used and the way he defined them, and the modeling strategy he employed. We first show that Arrow's work on scale economies was part of a research project carried out with Hollis Chenery on technology and resource allocation funded by the National Science Foundation, a project that enabled Arrow to develop a theoretical and macroeconomic theory of increasing returns. We then examine the influence of John Dewey's experiential approach to education on Arrow's use of the notion of “learning by doing” and its approximation by cumulative investment. We finally study the different strategies for modeling learning developed in the 1950s and 1960s, showing the influence of RAND's and Armen Alchian's contributions on Arrow's use of a log-linear equation of learning and its introduction into an economic growth model.
8 citations
TL;DR: In this article, the authors examined the relationship between labor supply and industry-level output in the context of the specific factors model and showed that a comparison both of labor intensities and labor demand elasticities plays an important role in determining which output expands relatively more when the size of labor force grows.
Abstract: In this paper we examine the relationship between labor supply and industry-level output in the context of the specific factors model. Jones (Trade, balance of payment and growth: essays in honor of Charles P. Kindleberger, Amsterdam, pp 3–21, 1971) shows that a rise in the amount of labor in the economy will increase the output in all industries. We empirically show which industry output is predicted to expand more when the size of labor force grows. Unlike the commonly used Rybczynski Theorem (Economica 22:336–341, 1955) of the Heckscher-Ohlin model, the specific factors model shows that a comparison both of labor intensities and labor demand elasticities plays an important role in determining which output expands relatively more when the size of labor force grows. For this purpose, we illustrate the importance of the parameters of the model in determining how changes in the labor supply affect the output change, with special reference to elasticities of substitution in production. We estimate the elasticity of substitution by using CES production function and show how these estimates describe the general equilibrium of production with one mobile factor (labor) and 25 industries of the US economy using data for 1979–2001. We show that the increase in the supply of labor raise output in all industries, but the magnitudes of the increases in some industries are more than others depending on the value of the elasticity of substitution along with factor intensities between industries. The largest output effect occurs for educational, health care and social service, where a 1 % supply of labor increase would raise output 10.5 %. However, the growth in the labor supply has a small impact on output growth in the range of 0.1–0.6 % in agriculture, petroleum, coal product and finance and insurance industries.
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TL;DR: In this article, the authors explore the role of savings rate and substitutability between labor and capital on the severity of systemic inequality under conditions of declining economic growth, such as those who have prevailed in advanced economies for almost half a century.
Abstract: Post-pandemic recovery must address the systemic inequality that has been revealed by the coronavirus crisis. The roots of this inequality predate the pandemic and even the global financial crisis. They lie rather in the uneasy relationship between labor and capital under conditions of declining economic growth, such as those who have prevailed in advanced economies for almost half a century. This paper explores the dynamics of that relationship using a simple stock-flow consistent (SFC) macroeconomic model of a closed economy. It examines in particular the role of two key factors—the savings rate and the substitutability (elasticity of substitution) between labor and capital—on the severity of systemic inequality under conditions of declining growth. The paper goes on to test the efficacy of three redistributive measures—a graduated income tax, a tax on capital and a universal basic income—under two distinct structural scenarios for an economy with a declining growth rate. We find that none of these measures is sufficient to control structural inequality when institutions aggressively favor capital over labor (hyper-capitalism). Taken in combination, however, under conditions more favorable to wage labor (proto-socialism), these same measures have the potential to eliminate inequality, almost entirely, even as the growth rate declines. © 2021 The Authors. Sustainable Development published by ERP Environment and John Wiley & Sons Ltd.
8 citations
01 Jan 2021
TL;DR: The Human Development Index (HDI) as mentioned in this paper is a broad and permissive framework for social evaluation, allowing for "many different things as being simultaneously valuable" as noted in Sen (2000).
Abstract: Human development is based on the expansion of the ability of people to be and do what they value and have reason to value—capabilities. It goes beyond income alone and distinguishes between “means” and “ends” of development (Streeten, 1994). Health and education have intrinsic value—beyond enhancing productivity. With income, they comprise the Human Development Index (see the text by Amartya Sen, paying tribute to Mahbub Ul Haq, in the 2020 Human Development Report: http://www.hdr.undp.org/en/2020-report ), which when introduced in 1990 initiated a broad and permissive framework for social evaluation (Allowing for “many different things as being simultaneously valuable,” as noted in Sen (2000). See also Stewart et al. (2018)). This chapter traces the evolution of human development metrics, describes current indices, and discusses perspectives that inform their evolution.
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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