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 article, the authors investigate the mechanism of adjustment in the labor market with respect to changes in GDP and investigate the response of employment, i.e. demand for labor, to the changes in the GDP is modeled as an error correction model (ECM).
Abstract: This paper aims to investigate the mechanism of adjustment in the labor market with respect to changes in GDP. For this purpose, the response of employment, i.e. demand for labor, to the changes in GDP is modeled as an error correction model (ECM). The results indicate that the adjustments in the labor market lagged GDP growth. Confining the analysis to the manufacturing sector provides similar results. Further analyses of variance decomposition also point to the relation between GDP and employment. However, labor market responds to GDP changes with a delay of more than 4 periods.
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Cites background from "Capital-labor substitution and econ..."
...In the demand-side Keynesian approach the relation between GDP, wage level, and labor demand is examined while taking into consideration the substitution effect arising from the substitutability of capital and labor (see Cellini et al., 2001, for an application of this approach to European Union countries and the US). In the neoclassical approach, on the other hand, the determinants of labor demand are investigated through a specified production function such as a constant elasticity of substitution (CES) production function (see Tan et. al., 2002, for an application of this approach to Singapore). In addition to these two approaches, there are other econometric studies that examine the relation between labor demand and other variables such as openness, education, etc. Guisan (2005) warns that a disequilibrium approach is the most appropriate one to examine the relation between labor demand and its determinants....
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...CES production function is originally introduced by Arrow et al. (1961) and is defined as follows: [ ] ρρρ ββθ s KLLKfQ −−− −+== )1(),( (1) where Q, K, and L denote value-added, capital, and labor, respectively. β is the distribution parameter that determines the distribution of income among factor…...
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...CES production function is originally introduced by Arrow et al. (1961) and is defined as follows:...
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TL;DR: The results reveal that switching from the FHG to FHO reduces the production of capitated services to enrolled patients and services to nonenrolled patients by 15% and 5% per annum and increases theProduction of after-hours and nonincentivized services by 8% and 15% perannum.
Abstract: In Canada's most populous province, Ontario, family physicians may choose between the blended fee-for-service (Family Health Group [FHG]) and blended capitation (Family Health Organization [FHO] payment models). Both models incentivize physicians to provide after-hours (AH) and comprehensive care, but FHO physicians receive a capitation payment per enrolled patient adjusted for age and sex, plus a reduced fee-for-service while FHG physicians are paid by fee-for-service. We develop a theoretical model of physician labor supply with multitasking to predict their behavior under FHG and FHO, and estimable equations are derived to test the predictions empirically. Using health administrative data from 2006 to 2014 and a two-stage estimation strategy, we study the impact of switching from FHG to FHO on the production of a capitated basket of services, after-hours services and nonincentivized services. Our results reveal that switching from the FHG to FHO reduces the production of capitated services to enrolled patients and services to nonenrolled patients by 15% and 5% per annum and increases the production of after-hours and nonincentivized services by 8% and 15% per annum.
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TL;DR: In this article, the authors considered metal as one of production factors nested with capital and labor, and employed normalized supply-side system approach to estimate the elasticity of substitution in constant elasticity-of-substitution function and analyzed technical change bias based on the analytical framework built in this paper.
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TL;DR: The Hopkinson rate consists of an energy charge for every kilowatthour of electricity a customer uses, plus an additional demand charge, a peak-demand charge on the maximum usage during the month as mentioned in this paper.
Abstract: The Hopkinson rate consists of an energy charge for every kilowatthour of electricity a customer uses, plus an additional demand charge, a peak-demand charge on the maximum usage during the month. Historically, industries in North America have generally been charged a Hopkinson rate for electricity use. In 1983, for example, 97 percent (see Blinder [1984]) of the publicly owned electric utilities in North America had demand charges in their commercial/industrial rate structure, whereas only 11 percent had time-of-day rates. However, with the exception of papers by Corio and Trimnell (1978) and Veall (1981), the focus of empirical research on industrial firms (like the focus of research in the residential sector) has been on examining the impact of time-of-use rates (e.g. Chung [1978], Chung and Aigner [1981], and Panzar and Willig [1979]).
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Dissertation•
20 Sep 2018
TL;DR: In this article, the authors consider the long-term economic scenario generators (ESGs), recursive preferences in life-cycle portfolio selection, and retirement objective formulation, and investigate the implied optimal behaviour and its plausibility.
Abstract: The global trend of shifting from defined benefit (DB) to defined contribution (DC) workplace pension plans is putting growing pressure on individuals to take more ownership in retirement planning and financial decision-making. The essence of the DB is the life-long income guarantee, which requires limited financial planning decisions to be made, either in the accumulation or decumulation phase. The DC on the other hand, is significantly more complex. The lump sum payment at retirement burdens individuals with the task of income generation, in the presence of challenges stemming from an uncertain future lifetime, economic conditions, and evolving consumption needs. The average retiree has limited competency to navigate these challenges, due to low financial literacy, lack of willpower, or deteriorating cognitive abilities with older ages. The high stake of these challenges calls for a normative solution to be proposed – a solution that considers the intricacy of risks, preferences, and normative objective formulations. The objective of this thesis is to explore such a solution. This thesis comprises three inter-related research directions: long-term economic scenario generators (ESGs), recursive preferences in life-cycle portfolio selection, and retirement objective formulation. A brief description of the subsequent chapters will now follow. The first chapter conducts a review of Wilkie’s ESG, with analysis restricted to series pertinent to retirement planning. Our main findings indicate that there exist challenges in modelling long-term economic series due to the presence of multiple structural shifts in the historical time series. Consequently, certain assumptions of stationarity are violated, and parameters are sensitive to the calibration period. A backtest based on 30-year out-ofsample data indicated that over that period the model had tended to overestimate inflation, underestimate total return on stocks, and performed relatively well for long-term interest rates. Additionally, Wilkie’s ESG can be under-representative of the risk in long-term stock investment, particularly in the tails. The second chapter provides an introductory discussion of Epstein-Zin preferences, which are adopted in the succeeding chapter as a normative preference model. The purpose is to first investigate the implied optimal behaviour and its plausibility. We pay particular attention to whether the output leads to plausible behaviour given the context of retirement planning. Specifically, analytical solutions for a simple consumption problem are derived, isolating the impact of relative risk aversion (RRA), elasticity of intertemporal substitution (EIS), time discounting, and risks stemming from mortality, investment, and inflation. We investigate three Epstein-Zin models employed in the literature, which differ in their treatment of mortality risk, and find that some lead to normatively implausible solutions. Importantly, we find that the EIS is not always monotone in its effect on consumption volatility over time, meaning that its interpretation can be ambiguous when considering an uncertain future lifetime. This has been misinterpreted in the literature to date. We also show that one particular Epstein-Zin specification is not necessarily a generalization of expected utility maximization under constant relative risk aversion, as many works wrongly
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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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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.
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903 citations