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, the Stolper-Samuelson Theorem is embedded in relative cost functions and their numerical inelasticity property, and a relative cost function connects isoquant tangents of contract curves with the tangents (shape) of production possibility curves.
Abstract: The Ricardian principle of ‘comparative advantage’ refers to relative costs (relative autarky prices) compared to another country. The relative cost (price) functions can be obtained directly from specified cost functions with global regularity properties. We derive the CES relative cost function with two primary factor prices. The Stolper-Samuelson Theorem is embedded in relative cost functions and their numerical inelasticity property. Factor price equalization represents extreme parametric versions of the relative cost functions. Moreover a relative cost function connects isoquant tangents of contract curves with the tangents (shape) of production possibility curves. The CES relative cost function is combined with Ohlin‘s ‘mutual-interdependence theory of pricing’ in solving the Walrasian general equilibrium system.
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25 Jul 2020
TL;DR: In this paper, the authors present a methodology to measure the concept of elite quality (EQ), that is, country's elites' propensity to create value, rather than rent seek, which negatively correlates with inequality measures, suggesting that more powerful elites less inclined to run value creation business models will exacerbate inequality.
Abstract: The aim of this paper is two-fold. Firstly, we present a methodology to measure the novel concept of elite quality (EQ), that is, country’s elites’ propensity– on aggregate – to create value, rather than rent seek. A four-level architecture allows for both an overall quantification of a country’s EQ, as well as an in-depth analysis of specific political economy dimensions, such as elite power. Secondly, the Elite Quality Index (EQx) is brought to life using data on 72 indicators for 32 countries. Our index negatively correlates with inequality measures, which suggests that more powerful elites less inclined to run value creation business models will exacerbate inequality. A variety of robustness tests suggest that the EQx scores and ranking are robust to ceteris paribus changes in key modelling assumptions. Thus, the EQx offers a reliable framework and new tool to analyze the political economy of countries.
01 Jan 1976
TL;DR: In this article, two strategies for regional development are analyzed: one tandemandfactors (13), (31), (41) and supply factors (13, 31, (31, (41)).
Abstract: Two strategies forregional development areanalyzed: one thandemandfactors (13), (31), (41). Supply factors typi- withanemphasis onpublic investment intheregion's infrastructure and cally include public andprivate capital facilities andservices theother with anemphasis onpublic investment ineducation andtraining, andlaborforcesizeandquality. Supply factors areim- A growth modelispresented whichincludes theeffects ofthese publicant because the d thecapply fathe region investment policy variables onproductivity, private investment, and portant because theydetermine thecapacity oftheregion migration. Alternative public investment strategies areevaluated usingforproduction; theyalsoplay an important roleinthe asocial welfare function. Optimization results indicate thataheavyregion's adapting tochanging demandpatterns andin emphasis oneducation andtraining isabetter strategy, atleast forthe attracting newprivate investment (39). specific problem considered. Thesensitivity ofthepolicy variables is investigated with respect tomodelparameter values, theregion's initialSme t icaldevel deat withvarou com- state, thetradeoff weights inthesocial welfare function, andtheassump- ponentsoftheregional development problem(12),(34), tion that keymodelparameters arenonrandom. Assuming that apara-(38). However, inthispaper severalcomponents ofthis meter israndom implies theresult that public investment ininfrastructure problem areintegrated intoalarge model, whichmustbe should beslightly increased fromalownominal level. solved numerically.
TL;DR: In this article , the authors proposed a generalized version of the CES production function that allows for various input effects on the probability distribution of output and proposed a three-stage Nonlinear Least Squares (NLS) estimation procedure for the estimation of the proposed functional form.
Abstract: The conventional functional form of the Constant-Elasticity-of-Substitution (CES) production function is a general production function nesting a number of other forms of production functions. Examples of such functions include Leontief, Cobb–Douglas, and linear production functions. Nevertheless, the conventional form of the CES production specification is still restrictive in multiple aspects. One example is the fact that the marginal effect of increasing input use always has to be to increase the variability of output quantity by the conventional construction of this function. This paper proposes a generalized variant of the CES production function that allows for various input effects on the probability distribution of output. Failure to allow for this possible input–output risk structure is indeed one of the limitations of the conventional form of the CES production function. This limitation may result in false inferences about input-driven output risk. In light of this, the present paper proposes a solution to this problem. First, it is shown that the familiar CES formulation suffers from very restrictive structural assumptions regarding risk considerations, and that such restrictions may lead to biased and inefficient estimates of production quantity and production risk. Following the general theme of Just and Pope’s approach, a CES-based production-function specification that overcomes this shortcoming of the original CES production function is introduced, and a three-stage Nonlinear Least-Squares (NLS) estimation procedure for the estimation of the proposed functional form is presented. To illustrate the proposed approaches in this paper, two empirical applications in irrigation and fertilizer response using the famous Hexem–Heady experimental dataset are provided. Finally, implications for modeling input-driven production risks are discussed.
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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