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Journal ArticleDOI

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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Journal ArticleDOI
TL;DR: In this paper, a consumer demand model for each experiment, and test the hypothesis that the elasticities of substitution are identical across experiments, is derived from an indirect utility function that permits the modelling to be separated into three stages.

128 citations

Journal ArticleDOI
TL;DR: In this article, the problems of nonlinear regression models are discussed, and model selection procedures for both nested and nonnested hypotheses are analyzed including an optimal sequential testing procedure for ordered nested hypotheses.
Abstract: In considering the problems of inference in nonlinear regression models the statistical and computational aspects of parameter estimation are discussed, and model selection procedures for both nested and nonnested hypotheses are analyzed including an optimal sequential testing procedure for ordered nested hypotheses. A distinction is made between tests of specification and tests of misspecification, and is discussed in relationship to the Wald, likelihood ratio, and Lagrange multiplier hypothesis testing principles. Degrees of freedom or small sample adjustments to the asymptotically valid test statistics are also discussed. The choice of production function from a class of CES functions, with either additive or multiplicative error specifications, for a cross section of UK industries, provides an application of the theory. 1. INTRODUCrION THIS PAPER IS CONCERNED WITH a number of methodological points of importance in applied econometrics, and though the particular application chosen is that of production function estimation, the points have a much wider relevance. The general area of concern is nonlinear inference, within which three problems are considered. (i) Nonlinear estimation is discussed and the feasibility and importance of estimating production functions directly for chosen structural specifications, rather than adopting one of the many indirect and approximate methods such as those of Arrow, et al. [4] (hereafter referred to as SMAC) and Kmenta [29], are emphasized. Nonlinear least squares estimates for a range of complex three- and two-factor production functions using United Kingdom industrial cross section data have been obtained. (ii) Problems of hypothesis testing, especially in nonlinear models, are considered and emphasis is placed on the importance of conducting this testing, for the many hypotheses which interest economists (e.g., the degrees of returns to scale and factor substitution) within a rigorous and systematic framework rather than the ad hoc way hypotheses are selected and tested in some studies. (iii) The closely ^lated problem of model selection is also analyzed, and the production function example illustrates the value of classical statistical procedures for ordered and nested hypotheses, while highlighting the problems that arise when there is a lack of unique ordering or nesting. There is, however, no claim to provide a complete solution to the model selection problem; rather an analysis of the problem is presented and a particular solution for the

127 citations

Journal ArticleDOI
TL;DR: Criteria for the ex-ante evaluation of service robots in concrete application areas are identified, identifying insights into how robotics affects the labor market, and on changes in the work processes of human workers.

127 citations


Cites methods from "Capital-labor substitution and econ..."

  • ...[17]; more recent application by Duffy et al....

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Posted Content
TL;DR: The authors developed an estimation strategy that filters panel data in an original way and avoids several pitfalls - difficult-to-specify dynamics, transitory time-series variation, and positively sloped supply schedules - inherent in investment equations that can bias the estimated elasticity.
Abstract: The elasticity of substitution between capital and labor features prominently in several areas of economic research. However, a consensus estimate remains elusive. We develop an estimation strategy that filters panel data in an original way and avoids several pitfalls - difficult-to-specify dynamics, transitory time-series variation, and positively sloped supply schedules - inherent in investment equations that can bias the estimated elasticity. Results are based on an extensive panel containing 1,860 manufacturing and non-manufacturing firms. Our model generates a precisely estimated elasticity of approximately 0.40. The method developed here may prove useful in estimating other structural parameters from panel datasets.

126 citations

Journal ArticleDOI
01 Jan 2016
TL;DR: In this article, a multisector model of factor shares is used to analyze the relationship between the capital-income ratio and the capital share in the United States, and the authors show that the correlation between the two is not visible in the data, and that the contribution to net capital income from all other sectors has been zero or slightly negative.
Abstract: In the postwar era, developed economies have experienced two substantial trends in the net capital share of aggregate income: a rise during the last several decades, which is well known, and a fall of comparable magnitude that continued until the 1970s, which is less well known. Overall, the net capital share has increased since 1948, but once disaggregated this increase turns out to come entirely from the housing sector: the contribution to net capital income from all other sectors has been zero or slightly negative, as the fall and rise have offset each other. Several influential accounts of the recent rise emphasize the role of increased capital accumulation, but this view is at odds with theory and evidence: it requires empirically improbable elasticities of substitution, and it presumes a correlation between the capital-income ratio and capital share that is not visible in the data. A more limited narrative that stresses scarcity and the increased cost of housing better fits the data. These results are clarified using a new, multisector model of factor shares.

125 citations

References
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Journal ArticleDOI
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

Journal ArticleDOI

3,961 citations

Book
01 Jan 1956
TL;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

Book
01 Jan 1938

926 citations