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: This paper showed that sustainable growth is possible even if environmental and man-made factors of production are complement rather than highly substitutable as has been invariably assumed by the literature and even if technological change is entirely pollution-augmenting.
Abstract: The standard theoretical literature has shown that environmental sustainability and positive economic growth are not incompatible as long as environmental policies are optimal. However, in showing this result earlier studies have relied on strong assumptions that may appear to charge the dice in favor of such result. Here we show that once the role of the consumption composition effect is recognized, environmentally sustainable economic growth may exist even if some of the most questionable assumptions used by the canonical models are relaxed. In particular, we show that sustainable growth is possible even if environmental and man-made factors of production are complement rather than highly substitutable as has been invariably assumed by the literature and even if technological change is entirely pollution-augmenting.
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TL;DR: The CES production function is always inconsistent with the law of diminishing marginal returns to either labor or capital and the marginal product of labor (capital) always approaches infinity as labor (Capital) approaches infinity as discussed by the authors.
Abstract: There are two troubling and largely unrecognized implications of the generalized CES production function when there are increasing returns to scale and the elasticity of substitution (𝜎) exceeds one: (1) under these conditions the CES production function is always inconsistent with the law of diminishing marginal returns to either labor or capital and (2) the marginal product of labor (capital) always approaches infinity as labor (capital) approaches infinity. To avoid these two implications one must restrict the parameter values of the CES production function to either not allow for increasing returns to scale or to require that σ
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Journal Article•
TL;DR: A CES function with separate trends based on Box-Cox transformations outperforms capturing technological progress by models with a single exponential trend.
Abstract: Constant Elasticity of Substitution production function allows us, compared with a Cobb-Douglas function, to model different efficiency trends of labor and capital. In this article, we explore the efficiency trends of labor and capital in supply systems for the private and public sectors in Slovakia independently. If a single exponential trend for technical progress is used, the Cobb-Douglas production function can be used for the private sector and Leontieff production function for the public sector. We, however find a CES function with separate trends based on Box-Cox transformations outperforms capturing technological progress by models with a single exponential trend. Labor and capital efficiency gains in our preferred model are converging downwards to a positive constant for labor and increasing over time for capital in the private sector, whereas they are gradually decreasing for both factors in the public sector. The elasticity of substitution between labor and capital is significantly greater than zero, but also lower than 0.5 in preferred models for both sectors.
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Additional excerpts
...Arrow et al. (1961) derived a general form of CES (constant elasticity of substitution) production function, allowing any positive value for that parameter apart from unity....
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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