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 explored the implications of elasticity of substitution and returns to scale on growth and employment creation, and found that a greater number of jobs can be created from growth of sectors with constant or decreasing return to scale than from the same level of output growth generated by sectors with increasing returns to scales.
Abstract: Elasticity of substitution and returns to scale are estimated on a sectoral basis for South Africa using panel-based generalised least square procedure. Apart from sectoral differences in terms of elasticity of substitution, the study found that elasticity of substitution is below unity in all of the sectors. Most of the sectors studied are found to have increasing returns to scale in production. The study further explores the implications of elasticity of factor substitution and returns to scale on growth and employment creation. It is argued that a greater number of jobs can be created from growth of sectors with constant or decreasing returns to scale than from the same level of output growth generated by sectors with increasing returns to scale. This is the case when the employment-creating potential of the same amount of additional output is compared in all the sectors examined. By virtue of scale economies, a sector like finance, insurance, real estate and business services generates more output with less proportional increase in inputs, which means growth in this sector may not have the desired impact on job creation. However, given the sector's large share (20%) of the country's total output and employment, it may generate more jobs, even if sectors like utilities and construction experience the same level of output growth. Given its importance for growth and employment, the study recommends further investigation into the reasons why elasticity of substitution is lower in sectors like utilities, mining and trade, catering and accommodation services.
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Cites methods from "Capital-labor substitution and econ..."
...The ACMS method of Arrow et al. (1961) represents one of these models and allows the estimation of elasticities from the relation between average labour productivity and real wages....
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...In the past, many economic models (e.g. the ACMS3 method of Arrow et al., 1961 and the neoclassical growth model of Solow, 1956) were developed with the assumption of constant returns to scale....
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TL;DR: In this article, the authors present theoretical and empirical investigation of the possible impact of human capital on economic growth in transition economies of Ukraine, Russia, Poland, and Hungary during the period of 1990-2007.
Abstract: This book presents theoretical and empirical investigation of the possible impact of human capital on economic growth in transition economies of Ukraine, Russia, Poland, and Hungary during the period of 1990-2007. This research defines place and role of human capital in the process of transition from the exogenous to the endogenous forms of growth and socio-economic development. Substantial part of the book is devoted to the integrative scholarly synthesis with the special emphasis on theoretical aspects of economic growth. The research presents both exogenous and endogenous models of growth, including Harrod-Domar, Solow, Solow-Swan, Leontief, Mankiw, Barro, and other models.
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TL;DR: In this article, a CES production function model is applied to measure the economic impact of geological survey at the industry level, and the results suggest that the synergistic contribution of central and local fiscal investments and social capital is significant to the price of mining rights.
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TL;DR: The application of duality theory in production theory has been reviewed in this article, where the authors describe the properties of five functional forms that have been used in the production literature: (i) the Constant Elasticity of Substitution (CES), (ii) the Generalized Leontief, (iii) the translog, (iv) the Normalized Quadratic and (v) the KonA¼s Byushgens Fisher functional forms.
Abstract: The paper reviews the application of duality theory in production theory Duality theory turns out to be a useful tool for two reasons: (i) it leads to relatively easy characterizations of the properties of systems of producer derived demand functions for inputs and producer supply functions for outputs and (ii) it facilitates the generation of flexible functional forms for producer demand and supply functions that can be estimated using econometrics The paper focuses on describing the properties of five functional forms that have been used in the production literature: (i) the Constant Elasticity of Substitution (CES), (ii) the Generalized Leontief, (iii) the translog, (iv) the Normalized Quadratic and (v) the KonA¼s Byushgens Fisher functional forms The applications of GDP functions and joint cost functions to various areas of applied economics is explained
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TL;DR: In this article, a potential output measure is calculated for the Austrian economy by means of macroeconomic production functions and the turning points resulting from the potential output gap method practically always coincide with the ones calculated with the help of deviations from a trend.
Abstract: For the purpose of estimating total capacity utilization a potential output measure is calculated for the Austrian economy by means of macro-economic production functions. The production functions (Cobb-Douglas, dynamic Cobb-Douglas, C.E.S.) are estimated with yearly as well as with quarterly data, using input data (labor, capital) standardized for differences in utilization. The gap between actual GNP (without agriculture) and the potential output estimated with quarterly data is a measure of global capacity utilization. This measure can be used to date business cycle turning points. The cyclical pattern resulting from these calculations is compared with more traditional business cycle measures, such as growth rates and deviations from trends. The turning points resulting from the potential output gap method practically always coincide with the ones calculated with the help of deviations from a trend.
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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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