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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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Posted Content
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 show then 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.
Abstract: The neo-classic exercise of growth economic accounting for a given country leads to a quantified diagnosis of the characteristics (capital, work, total productivity of the factors) of this growth while working with a function of Cobb-Douglas production In the presence of biased technical progress (ie progress not profiting identically with all the productive factors), this function is not able to separately provide the value of each bias, which can disorientate the economic policy In this paper, we provide theoretical and empirical details necessary in economics of technical progress and precisely on the subject of the technical biased progress We show then 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
Posted Content
TL;DR: In this article, it was shown that the criticism of the Allen-Uzawa elasticity of substitution in the works of Blackorby, Primont, and Russell is based on an incorrect example.
Abstract: This note proves that the representation of the Allen elasticity of substitution obtained by Uzawa for linear homogeneous functions holds true for nonhomogeneous functions. It is shown that the criticism of the Allen-Uzawa elasticity of substitution in the works of Blackorby, Primont, Russell is based on an incorrect example.
07 Nov 2012
TL;DR: In this article, a new way of determining using the first-order differential equation of Bernoulli type, giving also a useful tool for the creation of new production functions is presented.
Abstract: Production functions are an essential tool for analysis of production processes. The indicators of marginal production, marginal rates of substitution, elasticities of production and the marginal elasticity of technical substitution characterized, from different point of view, the behavior of the production under the action of factors of labor or capital. This paper presents a new way of determining using the first-order differential equation of Bernoulli type, giving also a useful tool for the creation of new production functions.
Dissertation
01 Jan 2004
TL;DR: This article showed that the assumption of Hicks-neutral technological change necessarily biases estimates of the elasticity of substitution between capital and labor towards one, given Berndt's (1976) specification.
Abstract: Based on U.S. data, Antris (2004) illustrates that the assumption of Hicks-neutral technological change necessarily biases estimates of the elasticity of substitution between capital and labor towards one, given Berndt's (1976) specification. Modifying the specification to allow for biased technological change, he obtains significantly lower estimates of the elasticity. Using Canadian data, I obtain similar results. This suggests that a Cobb-Douglas specification of Canada's aggregate production function may be misleading.

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

  • ...Consider the Arrow et al. (1961) CES production function expanded to allow for non-neutral technological change...

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  • ...Arrow et al. (1961) derived a CES functional form for the production function as below:...

    [...]

  • ...manufacturing sector has been widely estimated since the derivation of the Constant Elasticity of Substitution (CES) production function by Arrow et al. (1961). In particular, Berndt (1976) reconciled the difference between time-series and cross-sectional studies, by use of high-quality data, and found the estimates to be insignificantly different from one....

    [...]

Posted ContentDOI
01 Dec 2020
TL;DR: In this article, the authors investigated the effect on economic growth (GDP) for China's economy with capital, labor and energy input factors by using CES production function and Translog production function.
Abstract: In this paper, we investigate the effect on economic growth (GDP) for China’s economy with capital, labor and energy input factors by using CES production function and Translog production function. The empirical findings of the study showed that CES, consisting of capital and labor factors, is less efficient than the Translog function consisting of capital, labor and energy input factors for GDP estimation. The Ridge regression method is used to the parameter estimation of Translog production function using historical data because there is collinearity between variables. Then, based on the fitted Translog production model including capital, labor and energy input factors, the results of the output elasticities for each of the factors and the substitution elasticities between input factors have been dynamically estimated. To predict the future economic growth of the China economy, the inputs of Translog production model are predicted by using Holt-Winter’s method. The elasticities of the output of all input factors are positive. According to degrees of the effect on GDP, we can list the factors as labor, capital and energy, respectively. This situation represents the China economy is labor and capital intensive.
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