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 attempted to identify the source and structural nature of embodied technical change by decomposing it and applied their theoretical model to a pooled cross-section of six OECD countries for the 1965-1989 period.
Abstract: The question of technical change and productivity growth is one of the fundamental empirical issues of our time Surprisingly, Solow's original question of whether technical change is embodied in investment or the entire capital stock has been largely neglected This paper seeks to bridge the early work of Solow and others on the extent of embodiment of technical change with the more modern approach to estimating the structure of production and technical change using multifactor cost functions We also attempted to identify the source and structural nature of embodied technical change by decomposing it Our theoretical model is applied to a pooled cross-section of six OECD countries for the 1965–1989 period Our preferred model is one of full factor-augmenting embodied technical change because technical change augmenting the entire capital stock tends to overstate quality change in the aggregate capital stock more than that embodied in new investment This model specification supports the view that technical change is embodied in the stock of capital structure and is embodied in new investment of capital equipment
5 citations
01 Jan 2010
TL;DR: In this article, a rainfall-runoff model for the Zambezi River Basin (ZRB) is presented, which is calibrated on the best available runoff data for the basin and fed a wide range of water demand drivers as well as climate change predictions into the model.
Abstract: Consumptive water use in the Zambezi river basin (ZRB), one of the largest freshwater catchments in Africa and worldwide, is currently around 15-20% of total runoff. This suggests many development possibilities, particularly for irrigated agriculture and hydropower production. Development plans of the riparian countries indicate that consumptive water use might increase up to 40% of total runoff already by 2025. We have constructed a rainfall–runoff model for the ZRB that is calibrated on the best available runoff data for the basin. We then feed a wide range of water demand drivers as well as climate change predictions into the model and assess their implications for runoff at key points in the water catchment. The results show that, in the absence of effective international cooperation on water allocation issues, population and economic growth, expansion of irrigated agriculture, and water transfers, combined with climatic changes are likely to have very important transboundary impacts. In particular, such impacts involve drastically reduced runoff in the dry season and changing shares of ZRB countries in runoff and water demand. These results imply that allocation rules should be set up within the next few years before serious international conflicts over sharing the Zambezi’s waters arise.
5 citations
Cites methods from "Capital-labor substitution and econ..."
...(5)Upstream and downstream CES utility functions are given by fi = φi(ai · qi i,c + (1 − ai) · q ri i,n) 1 ri , with the subscript i being the upstream and downstream agent identifier [8]....
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Dissertation•
01 Jan 1999
TL;DR: In this article, the authors present a simple theoretical analysis of CAP costs and benefits and provide a simple Numerical Example of Calibration, which is used to quantify the CAP costs.
Abstract: ii) CHAPTER 1 THE ECONOMIC COSTS OF THE CAP 1 1.1 A Simple Theoretical Analysis of CAP Costs and Benefits 2 1.2 Partial Equilibrium vs. General Equilibrium 4 1.3 Earlier Empirical Estimates of CAP Costs 6 1.4 CGE Estimates of CAP Costs in the 1990s 7 1.5 Distribution Issues 13 1.6 Conclusions and Further Issues 14 CHAPTER 2 COMPUTABLE GENERAL EQUILIBRIUM THEORY AND PRACTICE 17 2.1 Functional Forms 18 2.1.1 Leontief Function 18 2.1.2 More Advanced Functions 20 2.1.3 Cobb-Douglas Function 22 2.1.4 Constant Elasticity of Substitution (CES) Function 28 2.1.5 Constant Elasticity of Transformation (CET) Function 33 2.2 The Theoretical Structure of a Stylised CGE Model 34 2.2.1 Demand for Final Commodities 34 2.2.2 Demand for Factor Inputs 35 2.2.3 The General Equilibrium System of Equations 35 2.3 Closure 38 2.4 Calibration of CGE Models 40 2.4.1 Econometric Estimation 41 2.4.2 Calibration and Functional Form 42 2.4.3 A Simple Numerical Example of Calibration 43 2.5 Model Representation and Solution Methods 46
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Posted Content•
TL;DR: This article examined the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegen's economic methodology in relation to the three main concerns of his epistemological orientation.
Abstract: This paper is to examine the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegen’s economic methodology in relation to the three main concerns of his epistemological orientation. Section 2 introduces two critical issues in relation to dimensions and curve fitting practices in economics in view of Georgescu-Roegen’s economic methodology. Section 3 deals with the logarithmic function (ln z) and shows that z must be a dimensionless pure number, otherwise it is nonsensical. Several unfortunate examples of this analytical error are presented including macroeconomic data analysis conducted by a representative figure in this field. Section 4 deals with the standard Cobb-Douglass function. It is shown that the operational meaning cannot be obtained for capital or labor within the Cobb-Douglas function. Section 4 also deals with economists’ “curve fitting fetishism”. Section 5 concludes this paper with several epistemological issues in relation to dimensions and curve fitting practices in economics.
5 citations
Cites background or methods from "Capital-labor substitution and econ..."
...The first example is Arrow et al (1961)....
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...In Section I of that paper they used regression analysis incorporating the following variables (Arrow et al. 1961, p. 227, please note that the definitions of these variables are stated by themselves): V: value added in thousands of U.S. dollars L: labor input in man-years W: wages (total labor…...
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TL;DR: In this article, the authors investigated the sign and size of the differential output elasticity of employment for different industries in the private and public organized sectors of the Indian economy during post-economic reform period.
Abstract: This paper investigates the sign and size of the differential output elasticity of employment for different industries in the private and public organized sectors of the Indian economy during post-economic reform period. A logarithmic form of demand function for employment, derived from the constant elasticity of substitution production function is estimated. An interaction variable is introduced after having ensured that the employment function has a structural shift by Chow break test. The results based on the time series data from the period 1969–1970 to 2004–2005, show that the positive magnitude of elasticity of employment with respect to output in transport, storage and communications industry is relatively very high, as the differential output elasticity of employment is not only positive but also more than unity followed by wholesale and retail trade and financing, insurance and real estate industries in the private organized sector during the post-economic reform period. This reflects the fact that the labor absorption capacity in the industries of transport, storage and communications, wholesale and retail, financing, insurance and real estate is relatively high. The magnitude of output elasticity of employment in financing, insurance and real estate is relatively high during the post-economic reform period as the differential output elasticity of employment is relatively small as compared to output elasticity of employment during the pre-economic reform period. The labor absorption capacity in private sector during the post-reform period is found to be relatively high as compared to public sector as the differential employment elasticity during the post-reform period in private sector is low. Further the results for the organized sector as a whole illustrate that the output elasticity of employment during the post-reform period is negative on account of negative differential output elasticity of employment showing that the economic growth during the post-reform period is not labor intensive in the Indian economy. Therefore, there is a need to review the sectoral policies to generate additional employment opportunities in the organised sector of the Indian economy.
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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.
10,850 citations
3,961 citations
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.
1,031 citations
903 citations