Capital-labor substitution and economic efficiency

doi:10.2307/1927286

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Capital-labor substitution and economic efficiency

Journal Article•DOI•

Capital-labor substitution and economic efficiency

Kenneth J. Arrow, Hollis B. Chenery, Bagicha S. Minhas, Robert M. Solow

01 Aug 1961-The Review of Economics and Statistics-Vol. 43, Iss: 3, pp 225-250

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.

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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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Journal Article•DOI•

Productivity within sections of firms—II measuring productivity in a section of a firm

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D.R. Snaddon¹•Institutions (1)

University of the Witwatersrand¹

01 Jul 1990-Technovation

TL;DR: In this article, the authors identify assumptions and pitfalls of using a productivity measure designed for use within a firm, and suggest that researchers should proceed with caution given these pitfalls and assumptions.

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3 citations

Journal Article•DOI•

Determinants of the tariff structure of the Israeli industrial sector 1965–1977

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M. Bar-Nathan¹, J. Baruh¹•Institutions (1)

Bank of Israel¹

01 Jul 1990-Journal of Development Economics

TL;DR: In this article, the determinants of the tariff structure of the Israeli manufacturing sector in the mid-1960s and late 1970s, a period marked by considerable trade liberalization, were examined.

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3 citations

Book Chapter•

The literature review

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Michael A. Forrester

22 Mar 2012

TL;DR: In this paper, the authors describe what is involved in doing a literature review for a qualitative project, however the general principles apply to both qualitative and quantitative focused psychology projects, however they do not cover the qualitative aspects of the review.

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Abstract: An excellent research project hinges on a good research question, and a good research question requires you to be familiar with previous research and theories. This is why one of the initial tasks associated with a dissertation, a final-year project and other similar research-focused activities is conducting a literature review of previously published work. Typically this would follow on from you having already gained some familiarity with an area from an appropriate textbook where they are available. This chapter describes what is involved in doing a literature review for a qualitative project, however the general principles apply to both qualitative and quantitative focused psychology projects.

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3 citations

Cites background or methods or result from "Capital-labor substitution and econ..."

...This result not only confirms the Arrow et al. (1961) conjecture but is also supported by empirical evidence. For instance, Duffy and Papageorgiou (2000) find that the AES is higher in richer countries than in poorer countries. Recently, Xue and Yip (2013) have developed a unifying framework that includes the full factor mobility, CES-CD-CD specification of Miyagiwa and Papageorgiou (2007) as a special case. In general, the monotone positive relation between capital intensity and the aggregate elasticity of substitution is confirmed. However, Xue and Yip (2013) also show that this positive relation becomes ambiguous for the case of sector-specific factor inputs, that is, where either capital or labor alone is used in one but not the other of the two manufacturing sectors while the other factor is used in and is fully mobile across both sectors....
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...This result not only confirms the Arrow et al. (1961) conjecture but is also supported by empirical evidence....
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...Although Arrow et al. (1961, p. 241) already conjectured that “the of economic development itself might shift the over-all elasticity of substitution”, the first systematic analysis of the relation between economic development, measured in terms of an increasing capital-labor ratio, and the aggregate elasticity of substitution was performed by Miyagiwa and Papageorgiou (2007). The authors build upon the...
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...However, based on the empirical observation that this constancy does not hold in general, especially at the industrial level, Arrow et al. (1961) developed the more flexible CES production function:...
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...However, based on the empirical observation that this constancy does not hold in general, especially at the industrial level, Arrow et al. (1961) developed the more flexible CES production function: (3) Y = γ [ δK σ−1 σ + (1− δ)Lσ−1σ ] σ σ−1 where γ > 0 is a Hicks-neutral efficiency parameter, δ ∈…...
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Journal Article•DOI•

An Examination of the Determination of Medical Capacity under a National Health Insurance Program.

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Yi Tui Chen¹•Institutions (1)

National Taipei University of Nursing and Health Science¹

03 Apr 2019-International Journal of Environmental Research and Public Health

TL;DR: The results of the sensitivity analysis indicate that individual disposable income, the medical expenditure for each treatment, the level of premium payments, and substitution parameters have a positive impact on medical capacity, while the medical costs and preference parameter negatively affect medical capacity.

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Abstract: This paper examines the capacity determination factors of medical services at a national level through the analysis of a mathematical model that maximizes social welfare, which consists of the consumption of private goods and the medical capacity provided by the society. A sensitivity analysis is conducted to investigate the impact of these factors on the medical capacity provided. Furthermore, a case example based on the data provided by the government is presented to discuss the results derived from the theoretical analysis. The results of the sensitivity analysis indicate that individual disposable income, the medical expenditure for each treatment, the level of premium payments, and substitution parameters have a positive impact on medical capacity, while the medical costs and preference parameter negatively affect medical capacity. The results of the correlation analysis based on the data of the case example are consistent with the findings of the theoretical analysis.

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3 citations

Cites methods from "Capital-labor substitution and econ..."

...[26] applied the CES utility function to consumer theories to describe the preference characterized by a constant elasticity of substitution between two differentiated goods or services....
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Book•

Sources of Economic Growth: Physical capital, human capital, natural resources, and TFP

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Tu Anh Nguyen¹•Institutions (1)

University of Paris¹

16 Feb 2012

TL;DR: In this article, the authors review neoclassical models which show the essential of TFP in long-run growth and the potential of being stuck in poverty trap, and show that long run economic growth can be sustained by learning-by-doing as claimed by accumulationists.

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Abstract: The first chapter of this dissertation review neoclassical models which show the essential of TFP in long-run growth and the potential of being stuck in poverty trap. In the second chapter we show that there might be three stages of economic growth. In the first stage the country concentrates on production of consumption goods; in the second stage it requires the country to import both physical capital to produce consumption goods and new technology capital to produce new technology; and finally the last stage is one where the country needs to import new technology capital and invest in the training and education of high skilled labor in the same time. The third chapter shows that long-run economic growth can be sustained by learning-by-doing as claimed by accumulationists. However, if labor is constant in the long-run, then growth can not be sustained. In addition, we also show that there are clubs of convergences in growth. In the fourth chapter we study the optimal growth of a developing non-renewable natural resource producer. We study the optimal extraction and depletion of the exhaustible resource, and the optimal paths of accumulation of capital and of domestic consumption. The last chapter devote for an empirical study on Vietnam's economic growth since Doi Moi (renovation). We found out that during last 22 years the high economic growth rates were driven mostly by physical capital accumulation. TFP contribute almost nothing to the growth. This implies that growth rate would slowdown if Vietnam failed to improve TFP in medium and long-term.

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3 citations

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References

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Journal Article•DOI•

Technical change and the aggregate production function

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Robert M. Solow

01 Aug 1957-The Review of Economics and Statistics

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.

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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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10,850 citations

Journal Article•DOI•

ECONOMIC GROWTH and CAPITAL ACCUMULATION

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T. W. Swan¹•Institutions (1)

Australian National University¹

01 Nov 1956-Economic Record

3,961 citations

Book•

Resource and output trends in the United States since 1870

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Moses Abramovitz¹•Institutions (1)

Stanford University¹

01 Jan 1956

TL;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

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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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1,031 citations

Book•

Mathematical Analysis for Economists

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R. G. D. Allen

01 Jan 1938

926 citations

Journal Article•DOI•

International trade and the equalisation of factor prices

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Paul A. Samuelson¹•Institutions (1)