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 article showed that energy is a much more important factor of production than its small cost share may indicate, and that continued economic growth along the historical trend cannot safely be assumed, notably in view of considerably higher energy prices in the future due to peak oil and climate policy.
139 citations
Cites background from "Capital-labor substitution and econ..."
...Dropping the latter assumption leads to a more complicated functional form (CES) that permits other values of the elasticity of substitution (Arrow et al. 1961)....
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TL;DR: In this article, the authors consider a one-sector model where imports are assumed to be either final goods which enter the utility functions of consumers, or intermediate goods which are separable from primary factors in the productive process.
Abstract: THE foreign sector in conventional macroeconomic models has not been properly integrated with behavioural relationships in the rest of the economy. The aggregate producing sector is usually depicted as employing primary factors, capital and labor, to produce a single output which simultaneously satisfies the demands of consumers, producers, governments, and foreigners. In this one-sector model, imports are implicitly assumed to be either final goods which enter the utility functions of consumers, or intermediate goods which are separable from primary factors in the productive process. The first assumption conflicts with empirical evidence that the bulk of international trade occurs in intermediate goods, while the second assumption involves a substantive restriction on the form of the technology which ought to be examined and justified empirically rather than assumed a priori. Most goods entering international trade require further processing before delivery to final demand. This processing requires the services of domestic primary factors of production which could be employed elsewhere. An important issue for public policy concerns the effect of trade and trade barriers on the distribution of factor income. If final demand can be satisfied either by employing domestic primary factors or by importing materials, then changes in import prices will, in general, alter the competitive returns to the primary factors. The usual assumption adopted for empirical work, namely that imports are final goods with no close domestic substitutes, rules out any income distribution effects resulting from a change in import prices. Previous investigators have estimated import demand equations by regressing the logarithm of a measure of imports on the logarithm of national income and the logarithm of the ratio of the price of imports to the price of domestic value added.' While this functional form has the advantage that the parameters measure the price and income elasticities of demand, it is not derivable from an underlying model of optimal behaviour, and it assumes that imports are final goods which are separable from all other commodities in the utility function of the consuming sector. Until very recently most empirically tractable functional forms have imposed separability restrictions a priori. Thus, even if one were to proceed from micro-economic foundations by assuming a constant elasticity of substitution functional form to model the taste or technology of the decision unit, the assumption of separability between imports and alternative factors or commodities would constitute a maintained hypothesis that could not be tested.2 The one output specification provides no way of explaining changes in the relative prices of various categories of final demand. It will only be appropriate for explaining the composition of inputs if the technology is separable with respect to a partitioning between inputs and outputs. In this case, the cost minimizing input bundle is independent of the composition of output, and, for purposes of explaining factor demands, one can pretend that a single output exists. Separability between inputs and outputs implies that marginal rates of substitution between pairs of factors are independent of the composition of output, and marginal rates of
134 citations
TL;DR: A manufacturing sector employing 20 % of the labour force would need to increase employment by 15 % per year to absorb the increment in a total work force growing at an annual rate of 3 % as mentioned in this paper.
Abstract: The expansion of industrial manufacturing alone cannot be expected to solve the unemployment and underemployment problem in most developing countries A manufacturing sector employing 20 % of the labour force would need to increase employment by 15 % per year merely to absorb the increment in a total work force growing at an annual rate of 3 % The required rate of increase of manufacturing output is even greater than 15 % if increases in labour productivity are taken into account1 In the light of these orders of magnitude, the contribution of the industrial sector to employment growth over the last decade has been disappointing in many developing economies (see Table 1 ) Ina number of countries in Latin America and Africa, despite significant investments in manufacturing, employment in the sector grew less rapidly than population, and in some cases even declined in absolute terms
132 citations
132 citations
TL;DR: In this paper, the authors adapted the two-stage neo-classical model of consumer behavior to the analysis of time-of-use pricing of electricity, with emphasis placed upon the relationship between partial elasticities, which can be accurately estimated from the first stage, and total elasticities that can be estimated only by using less reliable information to estimate the second stage.
131 citations
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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