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 explored the properties of the variable elasticity of substitution (VES) production function, and examined the dynamics of growth associated with it, showing that a higher value of a particular parameter in the production function leads to greater intergenerational income and consumption inequality.
Abstract: Purpose – The purpose of this paper is to explore the properties of the variable elasticity of substitution(VES) production function, and examine the dynamics of growth associated with it. Design/methodology/approach – The VES production function is incorporated into an otherwise standard Diamond overlapping generations model. Findings – Depending on parameter combinations, the economy can achieve a unique and stable steady state akin to that observed in the Solow-Swan model, reach a poverty trap or transition towards an upper bound of per capita capital stock. A special case of the VES production function is also consistent with unbounded growth. Research limitations/implications – The paper is theoretical in nature. Further empirical analysis could shed deeper insights into the results presented in this study. Practical implications – The VES production function, when applied to the context of the Diamond model,can capture a variety of growth experiences observed in the empirical literature. Social implications – In the context of the Diamond model, a higher value of a particular parameter in the production function leads to greater intergenerational income and consumption inequality. Hence, the study provides a potential explanation for intergenerational inequalities observed in practice. Originality/value – The study demonstrates the empirical value of the VES production function in explaining observed differences in factor shares, rewards and elasticities within and between countries over time.
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TL;DR: In this article, the authors examined the general equilibrium effects of different export promotion policies on imports and production of importables and exportables and developed a three-factor production function where value added depends upon the use of labor, capital and land.
Abstract: This study examines the general equilibrium effects of different export promotion policies on imports and production of importables and exportables. Unlike other studies, land as a factor input in the production function has been included. Thus, this article develops a three-factor production function where value-added depends upon the use of labor, capital and land.
2 citations
18 Jan 2018
TL;DR: In this article, the authors used the Stochastic Frontier Production Function Model (SFPM) to evaluate the productivity of wheat production in Iran and found that farm size shows the highest marginal rate of productivity.
Abstract: Production resources are limited, world’s population is growing. One way to increase the production is to increase the area under cultivation, but this solution is not possible in all situations. Besides, increasing the cultivation area does not guarantee an increase in production. Another way is to increase the production is using more advanced machinery and production techniques. Wheat is the most strategic agricultural product in Iran. It forms the significant portion of Iranian diet. Policymakers have always been interested in new methods that can make the country independent of importing wheat. T reach this goal, it is essential to evaluate the productivity of wheat production. Using data from surveys done by Agriculture ministry of Iran, this study estimates the productivity of wheat production using a Cobb-Douglas production function in Tehran. The proposed method to estimate the productivity is Stochastic Frontier Production Function Model. The result suggests Farm size shows the highest marginal rate of productivity.
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TL;DR: In this article, the authors explore the growth potentials with σ as a yardstick and study how different values of σ impact upon the balanced growth paths in theoretical model.
Abstract: Although the importance of the elasticity of substitution between capital and labor (σ) has long been recognized in several branches of economics, it has received too little attention in the growth literature. This paper aims to partly rectify this omission by exploring the growth potentials with σ as a yardstick and studying how different values of σ impact upon the balanced growth paths in theoretical model. When σ is high, the incremental capital is easily substituted for labor, resulting in a nearly equiproportionate increase in both factors. Under constant returns to scale, diminishing returns sets-in very slowly, and the marginal and average products of capital can remain sufficiently large so that output can grow indefinitely. The theoretical model is built upon the work of de La Grandville and Solow (2004) who show that perpetual growth is possible in the Solow (1956) model even without technological progress, if value of σ exceeds a critical value that is greater than unity ( cH σ ). I extend the model to show that output level, capital stock and consumption follow perpetual decline if σ is less than another critical value ( cL σ ) that lies between zero and unity. The critical values depend on saving, population growth and depreciation rates, and the initial share of capital in total output; hence each country has at most one critical value. I show that the above results also carry into in a model of endogenous saving, and analytically prove that the balanced growth path exists only if σ lies between two critical values- cL σ and cH σ . I calibrate the critical value of σ from the data for each country. These values are then compared to σˆ ’s estimated from country time series data. A number of countries, mainly from Africa, have ˆ cL σ σ ).
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...[ ] [ ] 0 / ) ( lim ) ( lim 1 0 > = = ′ − ∞ → ∞ → σ σ σ σ a k k f k f k k --- (4)...
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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