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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.
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TL;DR: In this paper, the spatial/regional distribution of a few structural parameters in the factory sector of India and purport to examine if, in the wake of globalization, there have been substantial changes in their distribution.
Abstract: The issue of inequality or imbalance in sectional, sectoral or regional distribution of economic and social variables is connected to welfare implications of the functioning of an economy responsible for allocation of resources, and production, distribution and consumption of the material requisites of well-being. Economic development and technological progress may or may not deliver justice in the Rawls’ sense although such development and progress might be perfectly just in Mill’s or Nietzsche’s sense. Inequalities and their dynamics are often studied in terms of collectives of gross variables – income, amenities and facilities, infrastructure, etc. – that directly impinge on the welfare of the people. However, deeper parameters are seldom studied in this regard. Nevertheless, these parameters - such as propensities to consume and save, rate and direction of substitution of factors of production, returns to scale, bias of technical progress, concentration of monopoly power, etc are altered in the process of development and determine the gross economic variables for a fairly long period. In this study we make an attempt to look into the spatial/regional distribution of a few structural parameters in the factory sector of India and purport to examine if, in the wake of globalization, there have been substantial changes in their distribution. Our main apparatus of analysis is ‘production functions’ that permit variable elasticities of factor substitution and returns to scale. We use data at the state level for 1990-91 and 2003-04 for our analysis.

1 citations

Dissertation
01 Jun 2001
TL;DR: In this paper, the authors tried to find out why the Ghanaian Poultry Industry is unable to produce enough poultry chicken to meet the local market demand which has led to the large importation of frozen chicken for the period 1988-1999.
Abstract: This study tries to find out why the Ghanaian Poultry Industry is unable to produce enough poultry chicken to meet the local market demand which has led to the large importation of frozen chicken for the period 1988-1999. It determines how responsiveness major poultry inputs such as vaccines, feed, labor and institutional credit are to price change and the economies of scale of layer production in the poultry industry. The study therefore estimates parameters of the input variables from the cost function and cost share equations, Allen Partial Elasticities of Substitution between inputs. These estimations are used in computing own price elasticities of demand for the poultry inputs, cross price elasticities of factor demand and scale elasticities in layer production over the period 1988-1999. The study also sought to determine what production function that best describes layer production in the Ghanaian Poultry Industry. The study's empirical econometric results indicate that a production function, which is characterized by non-homotheticity, non-homogeneity, non-unitary University of Ghana http://ugspace.ug.edu.gh

1 citations

Journal ArticleDOI
TL;DR: In this article , the elasticity of substitution between public and private capital was found to be 3.45, suggesting these widely used assumptions are invalid and that firms with higher dependence on external financing tend to have a higher elasticity.

1 citations

Journal ArticleDOI
TL;DR: In this paper , a generalized version of the Constant-Elasticity-of-Substitution (CES) production function is proposed, which allows for the inclusion of the minimum required levels of inputs.
Abstract: ABSTRACT The original specification of the Constant-Elasticity-of-Substitution (CES) production function introduced by Arrow, Chenery, Minhas, and Solow is considered to be a general production specification that nests multiple types of production functions, i.e. Leontief, Cobb-Douglas, and linear. However, even this general specification of production functions is restrictive in several ways. This paper proposes a generalized variant of the CES production function that allows for the inclusion of the minimum required levels of inputs. Not allowing for this potential attribute is, in fact, one shortcoming of the original CES production-function specification, which in turn could result in misleading conclusions about essential levels of inputs. Accordingly, a solution is proposed to overcome the mentioned shortcoming. Input thresholds are incorporated in the CES production specification, and empirical applications are provided for irrigation and nitrogen. To illustrate the proposed approach in this paper, two empirical applications in irrigation and fertilizer response using the famous Hexem-Heady experimental dataset as well as several datasets produced using Monte-Carlo experiments with different data-generating processes are provided. Finally, implications for modelling input thresholds are considered and discussed.

1 citations

Journal ArticleDOI
TL;DR: In this article, a Solow growth model with the labor force ruled by the logistic equation added by a constant migration rate is presented, and the global asymptotic stability of the capital and production per capita is proved.
Abstract: This paper presents a Solow Growth Model with the labor force ruled by the logistic equation added by a constant migration rate, I. We prove the global asymptotic stability of the capital and production per capita. Considering a Cobb-Douglas production function, we show this model to have a closed-form solution. This transient behavior is expressed in terms of the Beta and Appell F1 functions. We also show that if I > 0, it implies in a higher (minor) output of the economy, and in a minor (greater) capital and production per capita in the short term (middle and long term); furthermore, these ratios converge to the same steady-state value of the no-migration model; if I

1 citations


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

  • ...4 Considering a Perfect Substitution in a CES Production Function The family of production functions with constant elasticity of substitution (CES) is strongly used in research, and is defined as [2], [15]: Y (t) = A [ θK + (1 − θ)L ] − 1 γ (25) 8...

    [...]

  • ..., capital and labor must to be used in fixed proportions; if γ → 0 we recover the Cobb-Douglas production function used in the early sections, with unitary elasticity of substitution; and if γ = −1 we have perfect substitution between the inputs, that is, the isoquants are straight lines [2]....

    [...]

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