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, a more rigorous statistical approach was used to determine if a most appropriate empirical urban production function exists, and the range of production functions was much more inclusive than those previously estimated by others, owing to the use of a new series of urban capital stock estimates.
Abstract: This paper utilizes a more rigorous statistical approach to determine if a most appropriate empirical urban production function exists. The range of production functions is much more inclusive than those previously estimated by others, owing to the use of a new series of urban capital stock estimates.
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TL;DR: In this paper, a long-term time series regression from 1961 to 1998 was used to compare the Japanese construction industry with other countries in terms of factor substitution rigidities and technical progress.
Abstract: Observers of the Japanese construction industry are generally divided into two camps. The positive camp views the industry as progressive and worthy to emulate, not only by developing countries but also developed countries. The negative camp views the industry as not progressive and saddled with institutional rigidities and interest group politics. This paper provides evidence that the Japanese construction industry is not substantially different from that of other countries in terms of factor substitution rigidities and technical progress (Tan 1996; World Bank 1984; Cassimatis 1969). The study is based on a long-term time series regression from 1961 to 1998.
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TL;DR: In this article, a methodological modification using dynamically varying elasticity of substitution is proposed as a plausible alternative to model the energy transition in line with the historical observations and technical realities within the existing modeling systems.
Abstract: Integrated Assessment Models (IAMs) are mainstay tools for assessing the long-term interactions between climate and the economy and for deriving optimal policy responses in the form of carbon prices. IAMs have been criticized for controversial discount rate assumptions, arbitrary climate damage functions, and the inadequate handling of potentially catastrophic climate outcomes. We review these external shortcomings for prominent IAMs before turning our focus on an internal modeling fallacy: the widespread misapplication of the Constant Elasticity of Substitution (CES) function for the technology transitions modeled by IAMs. Applying CES, an economic modeling approach, on technical factor inputs over long periods where an entire factor (the greenhouse gas emitting fossil fuel inputs) must be substituted creates artifacts that fail to match the S-curve patterns observed historically. A policy critical result, the monotonically increasing cost of carbon, a universal feature of IAMs, is called into question by showing that it is unrealistic as it is an artifact of the modeling approach and not representative of the technical substitutability potential nor of the expected cost of the technologies. We demonstrate this first through a simple but representative example of CES application on the energy system and with a sectoral discussion of the actual fossil substitution costs. We propose a methodological modification using dynamically varying elasticity of substitution as a plausible alternative to model the energy transition in line with the historical observations and technical realities within the existing modeling systems. Nevertheless, a fundamentally different approach based on physical energy principles would be more appropriate.
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Additional excerpts
...…Energy in use (Unit Energy): R Price of Renewable Energy ($/E): 𝑃𝑅 Two-good (F and R) and perfectly competitive market setting: F*𝑃𝐹 + 𝑃𝑅*R = I Following Arrow et al. (1961): Energy Production Function (CES): 𝑌 = [𝛼 ∗ 𝐹−𝜌 + (1 − 𝛼) ∗ 𝑅−𝜌] − 1 𝜌 (1) Elasticity of Substitution:…...
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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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3,961 citations
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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