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Journal ArticleDOI

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.
Citations
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Journal ArticleDOI
TL;DR: This paper analyzed the impact of trade on wages in the context of the specific factors model by focusing on the link between trade and the average real wage and found that a ceteris paribus increase in the price of exportables in the wood industry would help labor but labor would be hurt by price increases in the food-baker, furniture, textile-garment, and metal-machinery industries.
Abstract: This study analyzes the impact of trade on wages in the context of the specific factors model by focusing on the link between trade and the average real wage. A recent paper by Jones and Ruffin (Rev Int Econ, 16:234-249, 2008) shows how one can use the specific factors model to predict how labor should fare from an improvement in the terms of trade. For this purpose, I use annual firm-level data on the manufacturing sector in Ghana during the period 1991-1997. I find that a ceteris paribus increase in the price of exportables in the wood industry would help labor but labor would be hurt by price increases in the food-baker, furniture, textile-garment, and metal-machinery industries.

1 citations


Cites background from "Capital-labor substitution and econ..."

  • ...Arrow et al. (1961) suggest that the elasticity of substitution be estimated from the relation between the value added per unit of labor and the wage rate (W)....

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  • ...Many empirical economists estimate Elasticity of Substitution by using the so-called ‘‘constant elasticity of substitution’’ (CES) production function of Arrow et al. (1961). Generally speaking, however, the true value of the elasticity of substitution is controversial....

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Posted Content
TL;DR: In this article, the authors demonstrate that the well-established procedures of normalization and nondimensionalization can be used to circumvent the technical problem of dimensional consistency of ecological economics models.
Abstract: We attempt to resolve the central dispute in recent debates on dimensional consistency of economic and ecological variables in ecological economics (Mayumi and Giampietro, 2010; Malghan, 2011; Chilarescu and Viasu, 2012; Baiocchi, 2012). Using canonical examples from ecology and economics, we demonstrate that the well-established procedures of normalization and nondimensionalization can be used to circumvent the technical problem of dimensional consistency of ecological economics models. However, we also show how normalization does not directly address the problem of mapping between cardinal and ordinal variables that is the primary source of dimensional consistency problems in ecological economics.

1 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyze the conditions for optimal technological change in a two-sector economy and show that the optimal growth rate is maximized subject to a steady state solution, and if such a path of growth exists then it will be considered as an optimal growth.
Abstract: The purpose of this paper is to analyze the conditions for optimal tech nological change in a neo-classical model of a two-sector economy. The basic underlying assumption is that growth rate needs to be maximized subject to a steady state solution. If such a path of growth exists then it will be considered as an optimal growth. The second assumption is that distribution of wage rate and profit rate must be optimized in order for both labor and capital to maximize their welfare. This assumption implies that optimal distribution will mean: (1) maximization of wages and profits; (2) a unique distribution where the marginal rate of substitution between wages and profits will be zero.

1 citations


Cites background from "Capital-labor substitution and econ..."

  • ...This assumption implies that optimal distribution will mean: (1) maximization of wages and profits; (2) a unique distribution where the marginal rate of substitution between wages and profits will be zero....

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  • ...determined from equations (1) (5), and assume that the roots...

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  • ...Stronger sufficient conditions are given in theorem 5, which guarantee that if a balanced growth path exists, it is both unique and stable, hence: Theorem 5: If any of the following conditions are satisfied for all wE(wmin, Wmax) then, (1) h'(k) = 0 is unique and stable, i....

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  • ...However, constraining the technological change to the equilibrium conditions implies the following ?\e relationships : (1) A Harrod neutral technological change in the sector which produces Q2 will cause a release of labor which will imply that the equilibrium conditions could be restored only if the sector which produces Qi experiences a Solow neutral technological change....

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  • ...Case 3b can be viewed as a strategy which in order to succeed must maintain the following conditions: (1) Capital could be released from sector 2 as such that ki will increase up to a point where ki = k2....

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Journal ArticleDOI
TL;DR: In this paper, the authors provide theoretical and empirical details necessary in economics of technical progress and precisely on the subject of the technical biased progress, and exhaustively and pedagogically why the Cobb-Douglas function does not allow a separate identification of these bias and is condemned to gather them within the Solow residual.

1 citations

Journal ArticleDOI
TL;DR: In this article, the authors focus on the timing of adoption of innovations in non-farm-produced agricultural inputs relative to conditions in the nonfarm economy and develop a deterministic and a stochastic model to test the hypothesis.
Abstract: The inter-relationships between the farm and non-farm sectors of advanced economies have received scant attention of late and in the Canadian context little attention at all. This paper concerns itself with one aspect of this inter-relationship. namely, the timing of adoption of innovations in non-farm-produced agricultural inputs relative to conditions in the non-farm economy. Following a chronological review of the relevant literature, an hypothesis is developed, and the remainder of the paper is devoted to the formal procedure of developing a deterministic and from this a stochastic model to test the hypothesis, concentrating on the particular input, fertilizer. The results of the estimation of the model are as expected, with one notable exception concerning the signs of certain key variables. Much of the remainder of the paper is devoted to discussing, and attempting to resolve, the dilemma that this exception raises. Les relations etroites entre les secteurs agricoles et non-agricoles dans une economie bien developpee n'ont recu que peu ďattention recemment, et la situation canadienne a ete encore plus negligee. Cet article traite un aspect de ces relations, a savoir, le reglage de ľadoption ďinnovations dans les investissements agricoles secondares en relation aux conditions de ľeconomie non-agricole. Apres une revue chronologique de la literature relevante, une hypothese est developpee et pour le restanl du papier ľauteur se concerne avec le procede forme! de developper un modele determinisle et de la un modele stochastique pour mettre son hypothese aľepreuve. Il se sen ďun investissemenl en particulier –ľengrais. Les resultats de ľevaluation du modele sonl commes prevus avec une exception notable ou les signes de certains variables clefs sont affectes. ľauteur discute cette exception en detail et essaie de resoudre le dilemme quelle pose.

1 citations

References
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Journal ArticleDOI
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.

10,850 citations

Journal ArticleDOI

3,961 citations

Book
01 Jan 1956
TL;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

Book
01 Jan 1938

926 citations