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 analyze the role of dissonance, synergy, ideas and talent for spinoff generation and find that the probability of a spinoff differs across teams with different types of synergies.
Abstract: Spinoff firms are exceptional performers across industries. The causes for the emergence of spinoff firms are widely investigated in the literature. However, the role of teams for spinoffs has received little scholarly attention. On one hand, talented individuals may find it necessary to team up with others to utilize complementary knowledge and generate synergies. On the other hand, some types of team production environments may have dissonance and motivate individuals to leave the team. Some individuals may leave the team on their own if they get new ideas and have the talent to implement these ideas and organize new teams. Utilizing appropriate specifications of team production functions that incorporate dissonance and synergy, we analyze the role of dissonance, synergy, ideas and talent for spinoff generation. The probability of a spinoff differs across teams with different types of synergies. Highly talented team members do not gain from a spinoff unless higher synergies are expected in the new team. Middle level talents form smaller teams with synergies and benefit from spinoffs. Individuals with low entrepreneurial talents are not in a position to form a team themselves. If existing team is in synergy then quality of the new idea plays a critical role in determining whether there will be a spinoff.
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01 Jan 1974
TL;DR: In the literature of economic theory the most frequently used classes of (macroeconomic) production functions with completely substitutable factors are the CD functions 2) and ACMS functions 3) defined respectively (for two arguments, usually interpreted as capital and labour) as mentioned in this paper.
Abstract: In the literature of economic theory the most frequently used classes of (macroeconomic) production functions with completely substitutable factors are the CD functions 2) and ACMS functions 3) defined respectively (for two arguments, usually interpreted as capital and labour) by
$$F\left( {K,L} \right) = c{K^a}{L^b}\quad \quad \quad \left\{ \begin{gathered} a,b,c\;positive,\;const.; \hfill \\ K>0,\;L>0 \hfill \\ \end{gathered} \right)$$
(0.1)
and
$$ F\left( {K,L} \right) = {\left( {{c_1}{K^{{ - \rho }}}} \right)^{{ - \frac{1}{\rho }}}}\quad \left\{ \begin{gathered} {c_1},{c_2}\;pos.,\;\rho
e 0,\;const.; \hfill \\ K>0,\;L>0, \hfill \\ \end{gathered} \right)$$
(0.2)
or, if a time variable t is involved4, by
$$F\left( {K,L,t} \right) = c(t){K^a}{L^b}\quad \quad \quad \left\{ \begin{gathered} a,b\;pos.,const.; \hfill \\ c(t)>0;\;t>0,\;K>0,\;L>0 \hfill \\ \end{gathered} \right)$$
(0.1′)
and
$$F\left( {K,L,t} \right) = \bar{c}(t){\left( {{c_1}{K^{{ - \rho }}} + {c_2}{L^{{ - \rho }}}} \right)^{{ - \frac{1}{\rho }}}}\quad \left\{ \begin{gathered} {c_1},{c_2}\;pos.,\;\rho
e 0, \hfill \\ const.;\;\bar{c}(t)>0; \hfill \\ t>0,\;K>0,\;L>0. \hfill \\ \end{gathered} \right)$$
(0.2′)
.
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Posted Content•
TL;DR: In this paper, a multi-region computable general equilibrium model is developed to examine Indonesia's trade regime and its labor markets, which enables the labor market impacts of shocks to trade policy, the capital stock, and technology to be examined individually and collectively.
Abstract: A multi-region computable general equilibrium model is developed in this study to examine Indonesia's trade regime and its labor markets. This model enables the labor market impacts of shocks to trade policy, the capital stock, and technology to be examined individually as well as collectively. The results suggest that the dominant factor in affecting wage inequality in Indonesia is total factor productivity growth. This strong role of productivity gains is distinctive, considering the prevailing view that East Asia's strong growth was driven primarily by capital accumulation. The model is also used to examine possible policy measures to reduce growth-induced wage inequality, including a return to some trade protection and the use of domestic taxes and subsidies. All are found to be costly to the economy as a whole and most to unskilled workers. The last price of analysis addresses the Asian financial crisis and its effects on Indonesian labor markets. The effects of contractionary shocks prove the opposite of the growth-related shocks of the previous decade. All workers are made worse off, the unskilled less so. Raising the elasticity of skilled labor supply through education, training, and migration is seen as the best approach to addressing the inevitable wage inequality increase that will accompany Indonesia's eventual recover.
5 citations
Cites background or methods from "Capital-labor substitution and econ..."
...Meanwhile, adapting from Arrow et al (1961), the biased technological change is estimated as the residual change in the employment ratio between skilled and unskilled labor after taking into account the change in their wage ratio....
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...The composite of intermediates is derived from a constant elasticity of substitution (CES) production function (Arrow et al, 1961), as is the composite of primary factors....
[...]
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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