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
More filters
47 citations
TL;DR: In this article, the authors used factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey and found that religiosity is negatively correlated with per capita income.
Abstract: We use factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey. Our measure of religiosity is negatively correlated with per capita income. Development apparently causes religiosity to fall to about half its pre-modern level. Most components of the demand for religion are reduced by development. The supply of religion declines once churches lose control over the institutions providing collective goods like education, health, and social security. These goods used to be supplied by churches jointly with religious services but tend to be supplied by the state with rising levels of development. Aspects of supply and demand are integrated in a CES production function framework that can explain the direction of causality in the observed negative correlation between income and religiosity.
46 citations
TL;DR: In this article, a number of alternative production function models using aggregate U.S. manufacturing data by states for the year 1957 were tested for specification error and the CES production function was tentatively chosen in preference to the Cobb-Douglas, variable elasticity, one form of the generalized production function, and a simple quadratic in capital and labor.
Abstract: Tests for specification error are applied to a number of alternative production function models using aggregate U. S. manufacturing data by states for the year 1957. On the basis of the test results, the CES production function is tentatively chosen in preference to the Cobb-Douglas, variable elasticity, one form of the generalized production function, and a simple quadratic in capital and labor. The CES function estimated in this case gives indications of increasing returns to scale and of having an elasticity of substitution parameter greater than one.
46 citations
Cites background from "Capital-labor substitution and econ..."
...The functional forms in which most interest has been shown are the CobbDouglas, the constant elasticity of substitution (CES), the variable elasticity of substitution (VES), and the generalized production function (GPF), see, for example, [2, 10, 11, 16]....
[...]
Posted Content•
TL;DR: In this article, a grid search approach is proposed for estimating the traditional CES function with two inputs as well as nested CES functions with three and four inputs, which can be applied in R using the add-on package micEconCES.
Abstract: The Constant Elasticity of Substitution (CES) function is popular in several areas of economics, but it is rarely used in econometric analysis because it cannot be estimated by standard linear regression techniques. We discuss several existing approaches and propose a new grid-search approach for estimating the traditional CES function with two inputs as well as nested CES functions with three and four inputs. Furthermore, we demonstrate how these approaches can be applied in R using the add-on package micEconCES and we describe how the various estimation approaches are implemented in the micEconCES package. Finally, we illustrate the usage of this package by replicating some estimations of CES functions that are reported in the literature.
46 citations
Cites background from "Capital-labor substitution and econ..."
...4Originally, the CES function of Arrow et al. (1961) could only model constant returns to scale, but later Kmenta (1967) added the parameter ν, which allows for decreasing or increasing returns to scale if ν < 1 or ν > 1, respectively....
[...]
Posted Content•
TL;DR: In this paper, the authors used a simulation model in which the distributions of income and wealth are analyzed together, and explored the influences of such socioeconomic variables as the pattern of intergenerational grants, the rules of inheritance, the patterns of mate selection, differential fertility of various income classes, and the patterns in governmental redistributions of income.
Abstract: In the vast literature on the distribution of income, relatively little systematic attention has been paid to the mutual influence of the distributions of income and wealth on each other, and to the impact of intergenerational grants on the entire process. The purpose of this essay is to utilize a simulation model in which the distributions of income and wealth are analyzed together. The model permits me to explore the influences of such socioeconomic variables as the pattern of intergenerational grants, the rules of inheritance, the patterns of mate selection, differential fertility of various income classes, and the patterns of governmental redistributions of income and wealth. So many simplifying assumptions must be made that the model, as it is presented below, cannot be directly used for determining the current size distribution of income and wealth; nevertheless, the results of the model suggest certain neglected factors, particularly the shape of the intergenerational savings function, that must be taken into account if we are to gain a clearer picture of the causal forces operating in the real world. The most important biases (mostly leading to greater income equality) arising from the simplifying assumptions of the model are also discussed below. To take all the major long-run factors influencing the size distributions of income and wealth into account is an extremely complicated matter, and we face two alternative research strategies; either we model these factors mathematically, which requires some drastic simplifications in order to keep the equation system solvable,' or we take more factors into account by simulating their impact. While the latter procedure does not lead to a completely general solution it does permit us to investigate certain features of economic systems using parameters of particular interest. To place this model in perspective, it is useful to note that variance of personal income can be derived from three sources; variances in the distribution of labor income, of property income, and of the interaction between these two variables.2 In this model, variations of labor income are handled by assigning everyone a lifetime income equal to the average lifetime in* Professor of economics, Swarthmore College. I wish to thank Howard Pack, J. Roland Pennock, Frank C. Pierson, Zora Pryor, and George Stolnitz for their helpful suggestions on an earlier draft. The research for this essay was financed by the International Development Research Center of Indiana University and was carried out at the Economic Growth Center of Yale Universitv. A considerable amount of difficult work was done by those who programmed this extremely complicated simulation model, and I would especially like to thank the chief programmer, Carol Hopkins. I would also like to express my apl)reciation to David Forman and Michael Hooven for assistance at particular points. 1 Such an approach is followed by Joseph Stiglitz anid, in a less formal fashion, by James Meade. 2 The higher the correlation between individual labor and property incomes, the more unequal the distribution of income. (See formula in fn. I1.) The correlation can, of course, be negative, a situation that apparently arose in mandarin China where receivers of property income made a special point of avoiding manual work, even if it meant a lifetime of poverty. (See Hsiao-Tung lFei.)
46 citations
References
More filters
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
3,961 citations
Book•
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