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 class of non-homothetic CES production functions was derived as a solution to a partial differential equation that defines the elasticity of substitution, based on some elementary results on duality.
Abstract: Based on some elementary results on duality, the paper proposes a much simpler way of deriving the class of non-homothetic CES production functions which was derived as a solution to a partial differential equation that defines the elasticity of substitution.
4 citations
Abstract: THE AGGREGATE PRODUCTION FUNCTION is one of the basic tools in the modern theory of economic growth. In recent years the increased interest in this subject has brought forth two types of improvement in the specification of the aggregate production function. First, the form of the production function has been noticeably extended from the constant elasticity of substitution functions (CES [1]) to variable elasticity of substitution functions, such as the linear elasticity of substitution function [17], the production function which combines CES and Cobb-Douglas functions [9] and [4], the production function in which the elasticity of derived demand is constant (CEDD) [14] and [15], etc. Secondly, the problems of specifying and measuring the types of technical progress that are consistent with a given form of the production function have been elucidated. For instance, in a theoretical paper [16] the present authors have studied extensively the implications of various types of " neutral " technical progress that result from the invariant relationships between pairs of important economic variables. Subsequently we have estimated production functions and technical progress on the basis of linear and log-linear invariant relationships between pairs of these variables [3]. The purpose of the present paper is to extend the scope of the above mentioned papers. We proceed by dropping the two-variable restriction and allowing general multi-variate analysis among subsets of production variables. In particular, alternative specifications of production functions and of technical progress will be obtained by specifying linear relationships between rates of change of such production variables as labor-capital ratio, output-capital ratio, wage rate, interest rate, marginal rate of substitution, and profit share. A general differential equation is derived from the linear combination of all these variables. Its solution yields a new class of production functions which includes the CES, Cobb-Douglas and their combination as special cases and for which technical change is factor augmenting. This new class of production functions may appropriately be called the "log-linear production functions." The model is tested against time series data for two digit industries in the United States 1949-65. The question asked is this: what production functions and what types of technical progress are we testing against each other when we
4 citations
TL;DR: This paper introduced the concept of "breadth relevance", which favors consistent achievers over one-hit wonders, and found that the exponent of the CES aggregator is less than unity rather than greater than unity, as for depth relevance.
Abstract: The Euclidean length of a citation list is “depth relevant”: the metric increases when citations are transferred from less to more cited papers. We introduce “breadth relevance,” which favors consistent achievers over one-hit wonders. The exponent of the CES aggregator then is less than unity rather than greater than unity, as for depth relevance. Using two datasets on citations of economists for the top 50 US and global universities, simply counting citations maximizes the correlation between the citation metrics of researchers and the peer-reviewed rank of their department. However, citation depth may explain the allocation of researchers across lower-ranked departments.
4 citations
Cites methods from "Capital-labor substitution and econ..."
...This is the well-known CES function (Solow, 1956; Arrow et al., 1961)....
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Dissertation•
01 Jan 2010
TL;DR: In this article, the authors evaluate the opportunity cost of different trade-related capacity building policy mixes with specific reference to Sub-Saharan Africa, excluding South Africa, and conclude that complementing improvements in the quality of human capital and infrastructure will provide the greatest bilateral trade flow benefit.
Abstract: Recent studies have documented the impact of institutions and infrastructure development on trade flows. This paper studies these issues in the context 010n90in9 trade-related capacity building initiatives and evaluates the opportunity cost of different trade-related capacity building policy mixes. Trade-related technical assistance and capacity building was recognized in 2001 bythe World Trade Organisation Doha Ministerial Declaration as a core element of the development dimension of the multilateral trading system and commitments were set out in those areas. The extentof trade-related technical assistance and capacity building to help developing and leastdeveloped countries participate more efficiently in international trade has increased by 50% between 2001 and 2004. The purpose of this thesis is to address the question of whether the weights assigned to different components of trade-related capacity building in existing trade-related capacity building programmes are economically justified. To do this the paper evaluates the opportunity costsof different trade-related capacity building policy mixes with specific reference to Sub-Saharan Africa, excluding South Africa. We use a number of variables from both theoretical and empirical literature to come up with composite indicators for trade-related institutions, infrastructure and human capital. The analysis is also informed by interviews with trade experts in Geneva as well as a review of relevant background documents. In the empirical analysis we use 2005 trade patterns for a data set of 117 countries of which 24 are in subSaharan Africa. Making use ofa gravity equation augmented with trade-related capacity building variables we run a series of Heckman's two-step selection regressions and estimate the marginal impactsof these trade-related capacity building indicators on trade as measured by value of total exports. To evaluate opportunity costs. we do policy simulations and estimate how much trade flows will be increased under various policy scenarios with respect to improved trade-related capacity building indicators in Sub-Saharan Africa. We examine scenarios that focus on improved institutions. infrastructure and human capital as they move in the direction of comparability with the rest of the world. The world's average level is used as the baseline for each of these composite indicators in the policy simulations. The results show that trade flows exhibit different levels of sensitivity to different trade-related capacity building policy options with the exporter's infrastructure being the most significant with an average elasticity of approximately 3.0. The findings also suggest that complementing improvements in the quality of human capital and infrastructure will provide the greatest bilateral trade flow benefit to Sub-Saharan Africa; while non-Sub-Saharan Africa countries gain the most from complementing infrastructure and institutions. Such a finding contradicts the current focus of ongoing TReB programmes that put emphasis on human capital development only. Building on both Grossman and Helpman (1991),s trade model and Barro (1990) s' growth model, the paper argues that the theoretical propositions are inadequate to address the dynamics associated with trade-related capacity buildingpolicy. The paper further argues that analyzing the impact ofrReB using these standard frameworks underestimates the impact since policy dynamics are not addressed in that framework. This could contribute to explaining why there has not been consensus in the trade-growth empirical literature, wrth some authors finding a positive and significant impact of trade on growth, while others argue that the impact is not significant Hence, the paper proposes improvements in the specification of the standard growth model to take into account policy dynamics, specifically assumptions regarding substitutability among TRee invesbnents.
4 citations
Cites background from "Capital-labor substitution and econ..."
...Arrow et al. (1961) and other researchers questioned the restrictive nature of the CobbDouglas model in assuming that all elasticities are equal to 1 and developed other flexible functions that allow substitution to be unrestricted (Berndt & Christensen 1973; Christensen et al....
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Posted Content•
TL;DR: In this article, the authors focus on verifying the relevance of two theoretical propositions and related empirical investigation about the relationship between creativity and entrepreneurship, drawing upon a creativity process that considers three "dimensions" or "disciplines" critical for creative organizations.
Abstract: This paper focuses on verifying the relevance of two theoretical propositions and related empirical investigation about the relationship between creativity and entrepreneurship. It draws upon a creativity process that considers three “dimensions” or “disciplines” (3D) critical for creative organizations — within discipline expertise, out of discipline knowledge, and a disciplined creative process. The paper first explores the Cobb‐Douglas production function as a relevant tool for modeling the 3D creative process. The next part discusses the 3D process as a production function, which is modeled following the well‐known Cobb‐Douglas specification. Last, the paper offers implications for future research on disciplined creativity/innovation as a method of improving organizations’ creative performance.The modeling shows that labor and investment can readily enter into the 3D creativity process as inputs. These two inputs are meaningful in explaining where innovation outputs come from and how they can be measured, with a reasonable theoretical decomposition. It is not true that the more capital investments in the creativity process, the better the level of innovation production, but firm’s human resource management and expenditures should pay attention to optimal levels of capital and labor stocks, in a combination that helps reach highest possible innovation output.
4 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.
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