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 impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia, was examined based on an annual manufacturing survey.
Abstract: This paper exploits micro firm level data to examine the impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia. The analysis is based on an annual manufacturing survey. We identify the impact of specialization of the cluster, diversification, and links to foreign buyer networks. For this purpose, a production function framework is developed. The results lend support to the view that clustering of large and medium scale specialized firms improves firm performance, while clustering of small scale specialized firms and clustering of diverse firms are not conducive to firm performance. We also find a clear positive association between involvement in exporting activities and firm performance.
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Cites methods from "Capital-labor substitution and econ..."
...There are different versions of the CES function used in the literature, of which the Arrow et al. (1961) model specification has become the standard specification (see Klump and Preissler, 2000)....
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Posted Content•
TL;DR: A notion of attention elasticity measuring the sensitivity of attention strategies with respect to changes in incentives is introduced and it is shown how the introduced class of cost functions controls attention elasticities while the Shannon model restricts attention elasticITY to be unity.
Abstract: We consider a generalization of rational inattention problems by measuring costs of information through the information radius (Sibson, 1969; Verdu, 2015) of statistical experiments. We introduce a notion of attention elasticity measuring the sensitivity of attention strategies with respect to changes in incentives. We show how the introduced class of cost functions controls attention elasticities while the Shannon model restricts attention elasticity to be unity. We explore further differences and similarities relative to the Shannon model in relation to invariance, posterior separability, consideration sets, and the ability to learn events with certainty. Lastly, we provide an efficient alternating minimization method -- analogous to the Blahut-Arimoto algorithm -- to obtain optimal attention strategies.
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TL;DR: A growing trend toward mechanization of harvesting-curing operations has, among other effects, greatly reduced labor usage in tobacco production in the United States as mentioned in this paper, leading to a reduction of more than 63 percent in the total man-hours of tobacco production from 747 million to 275 million.
Abstract: Tobacco production traditionally has been a highly labor-intensive operation in this country. Although the entire crop is grown on only .3 of 1 percent of the total cropland, tobacco requires more labor than is required for all vegetable crops and about the same amount as needed for cotton and food grains combined (USDA, Agricultural Statistics) . However, in recent years a growing trend toward mechanization of harvesting-curing operations has, among other effects, greatly reduced labor usage. During the time period 1949–1976, total man-hours in tobacco production in the United States declined from 747 million to only 275 million—a reduction of more than 63 percent (USDA, Agricultural Statistics ). Much of this reduction has been due to the introduction of bulk curing barns and mechanical harvesters (multipass and once-over types), which have replaced tying by hand or machines, conventional barns, and walking or riding primers. Mechanization of tobacco production has been relatively slow because of the special growing, harvesting, and curing requirements. However, the present state of mechanization is not insignificant.
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Dissertation•
01 Jan 2012
TL;DR: A short list of people who come to my mind: I am most highly indebted to my advisor Heinrich Ursprung as mentioned in this paper for having me as a visitor at UT Austin and for repeatedly restoring my self-confidence when I was not sure if my work made any sense at all.
Abstract: Acknowledgments Many other people have helped me write this dissertation. Here is a short list of people who come to my mind: I am most highly indebted to my advisor Heinrich Ursprung. His style as an advi-sor was similar to his political views: laissez-faire. Few other advisors would have given me the freedom to write a dissertation, which combines such diverse topics and approaches. Yet, whenever something worked out in the end, I have had the impression that I had been guided by the 'invisible hand' of Ursprung's. Dan Hamermesh is of similar great importance. I could not imagine having a more valuable person to talk to about my research. Besides many other things, I have to thank him for having me as a visitor at UT Austin and, most importantly, for repeatedly restoring my self-confidence when I was not sure if my work made any sense at all. I am grateful to my co-authors. Jörg has become a good friend since he took over the Handelsblatt ranking in 2009. Derya, Hannes and Robert have been among my best friends for years before we started doing joint research. As I describe in Essay 4, scientific collaboration can be a painful process. So it is even more remarkable that, if anything, our friendships have become even better while we were working together. Other professors in the economics department at the University of Konstanz that I have worked with include Winfried Pohlmeier, Ralf Brüggemann and Florian En-glmaier. I have learned a lot from interacting with them both as an economist and as a person. Oliver Fabel of the University of Vienna's department of business administration gave me a job already one year before my graduation. That move came somewhat i ACKNOWLEDGMENTS unexpected for me. But Oliver and many other people in Vienna have made it possible for me to quickly adapt to the new environment. Any list of friends that I have made in the doctoral program would necessarily be incomplete. I just want to mention four of them, two from either sex, whom I have spent much time with: Last but not least, I want to mention my parents, my numerous brothers and sisters and other extended family members. I am generally a laid-back person. Here is the reason why: No matter what and how much I screw up, I know I can always rely on the support on my family. …
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Journal Article•
TL;DR: In this article, a large body of economic literature has established that the primary purpose of business is profit maximization assuming unitary and constant elasticity of substitution of production factors, however, the prevailing operating conditions of micro and small enterprises raise concerns about the validity of this assumption and the objectives in this sector.
Abstract: La literatura economica establece que el objetivo principal de toda empresa es la maximizacion de beneficios, suponiendo sustitucion continua y unitaria de factores productivos. No obstante, las condiciones preponderantes de operacion y desempeno de la micro y pequena empresa obligan a revisar la validez de este supuesto y los objetivos en este sector. Con base en un estudio empirico para Mexico, utilizando una funcion de produccion translogaritmica y datos de seccion cruzada para el ano 2014, se encuentra que las relaciones entre los factores de la produccion resultan no unitarias, y algunas de ellas se muestran incluso complementarias. Ello motiva a reflexionar acerca de que, mas alla de la maximizacion de beneficios, la micro y pequena empresa podria estar incluyendo otros objetivos, como el de optimizar la capacidad instalada. ------------------------------------ A large body of economic literature has established that the primary purpose of business is profit maximization assuming unitary and constant elasticity of substitution of production factors. However, the prevailing operating conditions of micro and small enterprises raise concerns about the validity of this assumption and the objectives in this sector. Through an empirical study for Mexico and using the translog production function based on cross-sectional data by 2014, we find that the substitution elasticities between production factors are not unitary and even to some extent, they show complementarity. This forces us to consider that beyond seeking to maximize profits, micro and small enterprises might be including other objectives, such as to optimizing installed capacity.
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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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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