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, a non-linear formulation for a productivity index in which infrastructure and economic mass (to reflect degree of agglomeration economies) of a region enter as interacting variables is proposed.
Abstract: Simplistic treatment of infrastructure during regional modeling often produces erroneous results and potentially wrong policy prescriptions. This paper attempts to address this issue and proposes a non-linear formulation for a productivity index in which infrastructure and economic mass (to reflect degree of agglomeration economies) of a region enter as interacting variables. The formulation is numerically tested to examine the effect of infrastructure investment at different level of agglomeration. Finally, the productivity index is used as a part of Constant Elasticity of Substitution (CES) production function, and the model is validated through estimation and calibration techniques using time-series data of Japan's regions. The validated formulation for productivity index, which realistically encompass the role of infrastructure, can potentially be utilized to assess the dynamic impacts of infrastructure in a multiregional context. The result is theoretically robust and practically useful for policy making particularly in developing Asian countries.
1 citations
Cites background from "Capital-labor substitution and econ..."
...Aschauer (1989) asserted that infrastructure investment causes a significant rise in aggregate productivity....
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01 Jan 2018
TL;DR: In this paper, a new concept of environmental taxes can serve as a new EU's own resource, which would lead to more transparent financing of the EU budget and bet ter environmental protection.
Abstract: EU’s own resources create the base of the European budget revenues. Traditional resources of the European budget are decreas ing. The current status of own resources is both inconvenient and confusing. A new concept of environmental taxes can serve as a new EU ́s own resource. This concept would lead to more transparent financing of the EU budget and bet ter environmental protection. In combination with an application of the pri nc ple of the fiscal neutrality, which consists in a collateral reduction of certain direct taxes, the tax could accelerate economic growth. The concept of the EU ́s own resources reform through an introduction of the environmental tax in the amount of 1% of GDP, accompanied by parallel decreasing of the tax burde n by the same amount has been proposed. Calculations of macroeconomic effect s have been executed with help of the computable general equilibrium model wi th the focus on Slovakia.
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TL;DR: In this article, the authors used an aggregate modelling approach to assess the impacts of a redistribution of the taxes and duties that currently exist on crude oil and refined petroleum products on the Philippine economy.
Abstract: This paper uses an aggregate modelling approach to assess the impacts of a redistribution of the taxes and duties that currently exist on crude oil and refined petroleum products on the Philippine economy. The approach used in the analysis consists of a general equilibrium model composed of fourteen producing sectors, fifteen consuming sectors, three household categories classified by income and a government. The effects of replacing the taxes and duties on crude oil and refined petroleum products with a more broad based tax on manufacturing and service sectors output on prices and quantities are examined. The results are revealing. For example, the consequences of redistributing the tax burden away from petroleum products to the manufacturing and service sectors of the Philippine economy will be an increase in output by all producing sectors of about 3.5 percent or about 2.4 hundred billion Philippine pesos, a rise in the consumption of goods and services by about 6.1 percent or 1.6 hundred billion Philippine pesos, a rise in total utility by 6.9 or 1.9 hundred billion Philippine pesos, and virtually no change in tax revenue for the government. When subjected to a sensitivity analysis, the results are reasonably robust with regard to the assumption of the values of the substitution elasticities. That is, while the model's equilibrium values do vary in response to different assumptions of the values of these elasticities, the fluctuations are not so enormous to suggest that the model is unrealistically sensitive to these parameters.
1 citations
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TL;DR: The authors examined empirical links between relative prices and bilateral trade based on constant cost trade theory and examined the effects of relative prices on the total bilateral net exports across models, and showed that trade patterns are complex among partially specialized regions.
Abstract: This paper examines empirical links between relative prices and bilateral trade based on constant cost trade theory. The global models are built from the World Input-Output Database WIOD aggregated to three, four, and five regions and goods. The simple model assumes relative labor shares are relative prices and average relative price is the terms of trade. Trade patterns are complex among partially specialized regions. Model predictions are compared to observed net exports in seven different aggregations. Regression analysis also examines the effects of relative prices on the total bilateral net exports across models.
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15 Apr 2019
TL;DR: In this article, the authors quantified the terms of trade shock response of the Russian economy on a detailed computable general equilibrium (CGE) model calibrated with Russian input-output data.
Abstract: The principal interest of the paper is the quantification of terms of trade shock response of the Russian economy on a detailed computable general equilibrium (CGE) model calibrated with Russian input-output data. A number of recent theoretical studies ((Baqaee and Farhi 2019), (Atalay 2017)) stressed importance of explicit introduction of the intermediates in the models assessing effects of microeconomic and external shocks.
CGE models permit introduction of rich details and complex production structures as well as optimizing behaviour of economic agents. The results suggest a decrease of welfare of the representative consumer and real GDP with the deterioration of the terms of trade.
In the Central scenario (a 10% decrease in the world price of crude oil, a 3% decrease in the world price of natural gas and an 8% decrease in the world price of petroleum products) welfare of the representative consumer decreases by -3,55% of benchmark consumption level or 1,76% of the base year GDP in the comparative static model, where factors are fixed at benchmark levels.
Welfare changes associated with the Central scenario of the steady-state model, where capital stock adjusts to it’s long-term level, indicate a significant decrease in the welfare of the representative agent up to -5,79% of benchmark consumption level or -2,92% of the base year GDP.
These results exceed welfare changes in the Central scenario of the static model, and we can refer to these values as an upper bound of possible changes in welfare in the dynamic modelling exercise (Rutherford and Tarr 2003).
The model was validated by historical simulation with observed levels of exogenous parameters, mimicking change in economic environment from 2011 to 2015. The results of the historical simulation stress the importance of fiscal parameters (i.e. export taxes) in analysis of production behaviour of Russian extraction industries.
1 citations
Cites background from "Capital-labor substitution and econ..."
...…note, that limit case of a CES function with elasticity of substitution 𝜎 = 0 is the Leontief function, and 𝜎 = 1 is the Cobb-Douglas function (K. J. Arrow et al. 1961). substitution between domestic and imported goods (𝜎𝑚 = 0.4), share parameters for each industry i and each good j are…...
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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.
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903 citations