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 show that the problem of biased estimates of the direction of technical change is relevant in the estimation of aggregate CES and translog production functions, and they extend this line of analysis to misspecification of the functional form.
Abstract: Technical change that augments capital and labor input in a non-neutral way plays
an important role in explaining the relation between growth and other macroeconomic
outcomes. Previous research has shown that restricting technical change to be neutral
leads to overestimating the elasticity of substitution between capital and labor. I extend
this line of analysis to misspecification of the functional form. Evidence from Monte Carlo
simulations shows that the problem of biased estimates of the direction of technical change
is relevant in the estimation of aggregate CES and translog production functions. In
particular, I find examples where true technical change is neutral and estimated technical
change is strongly directed towards one factor.
3 citations
TL;DR: In this paper, the authors present a nonlinear model where the information and communication technology (ICT) sector is endogenized, and they find that the elasticity of substitution of the aggregate sector has a value intermediate between that of ICT sector and that of the traditional sector, indicating that the input complementarity is tighter in the former than in the latter.
Abstract: In this paper, we present a nonlinear model where the information and communication technology (ICT) sector is endogenized. In the model, there are two intermediate goods: a traditional good produced by capital and labor and the ICT good produced by innovative capital and skilled labor. The final good is obtained combining the two intermediate goods. The model is specified and estimated as continuous-time general disequilibrium framework. Our main results are the following. We find that the elasticity of substitution of the aggregate sector has a value intermediate between that of the ICT sector and that of the traditional sector, indicating that the input complementarity is tighter in the former than in the latter. Moreover, in all the sectors elasticities are well below 1. As for the traditional sector, whose share is predominant in the production of the final good, the input complementarity helps explain most of the labor share decline of Italian economy as a consequence of the slowdown in the growth of capital intensity. In the ICT sector, technological progress, both in the form of capital augmenting and capital bias, showed a decline over the sample period with an obvious negative consequence on the global evolution of the technical progress. The results about the dynamics of the two intermediate sectors allow to interpret the “Italian paradox” of an industrial structure marked by an increasing weight of the traditional sector and the difficulties encountered by the Italian economy in exiting from its actual worst recession since the 1930s.
3 citations
01 Jan 1969
TL;DR: In this article, the authors consider the maximization of net worth under standard neoclassical conditions of production: levels of output, variable input, and the services of each capital asset are constrained by a production function.
Abstract: To begin the discussion of the demand for capital services, we consider maximization of net worth under standard neoclassical conditions of production: levels of output, variable input, and the services of each capital asset are constrained by a production function. The criterion of maximizing net worth may be derived as a necessary condition for maximization of utility subject to a fixed set of production possibilities and to competitive markets for all commodities. Alternative criteria for optimal capital accumulation have been proposed in great number. 1/ Only the criterion of maximum net worth may be derived from the maximization of utility. 2/
3 citations
TL;DR: It is argued that both the acceleration index and the algorithm to allocate tests among French departments are useful tools to guide public health policies as France enters a second lock-down period with indeterminate duration.
Abstract: An acceleration index is proposed as a novel indicator to track the dynamics of the COVID-19 in real-time. Using French data on cases and tests for the period following the first lock-down - from May 13, 2020, onwards - our acceleration index shows that the ongoing pandemic resurgence can be dated to begin around July 7. It uncovers that the pandemic acceleration has been stronger than national average for the [59 − 68] and especially the 69 and older age groups since early September, the latter being associated with the strongest acceleration index, as of October 25. In contrast, acceleration among the [19 − 28] age group is the lowest and is about half that of the [69 − 78], as of October 25. In addition, we propose an algorithm to allocate tests among French departements, based on both the acceleration index and the feedback effect of testing. Our acceleration-based allocation differs from the actual distribution over French territories, which is population-based. We argue that both our acceleration index and our allocation algorithm are useful tools to guide public health policies as France enters a second lock-down period with indeterminate duration. JEL Classification Numbers I18; H12
3 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.
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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.
1,031 citations
903 citations