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: Using disaggregated farm-level data from Hebei and Shandong provinces of China, Wang et al. as mentioned in this paper calculated the Allen and Morishima elasticities of substitution between labor and machinery.
Abstract: The substitution between rural labor and machinery has been a key determinant of farm production, structure, and efficiency in most developed countries and is expected to play a key role in shaping the future of Chinese agriculture. Using disaggregated farm-level data from Hebei and Shandong provinces of China, we calculated the Allen and Morishima elasticities of substitution between labor and machinery. These elasticities were based on seemingly unrelated regressions and three-stage least squares estimates of the translog cost function and input cost share functions. In contrast to previous studies, we dissaggregate machinery inputs into three categories: large, medium, and small. In addition, the issue of endogeneity in output quantity and input prices is also addressed. The results show strong evidence of substitution between labor and the three categories of machinery inputs. The findings also support substitution among the three categories of machinery themselves.
La substitution entre la main-d'œuvre agricole et la machinerie constitue un determinant fondamental de la production, de la structure et de l'efficacite des exploitations agricoles dans la plupart des pays developpes et elle devrait jouer un role cle dans l'evolution de l'agriculture chinoise. A l'aide de donnees desagregees sur les exploitations agricoles situees dans les provinces chinoises de Hebei et de Shandong, nous avons calcule les elasticites de substitution d' Allen et de Morishima entre les facteurs de la main-d'œuvre et de la machinerie. Le calcul de ces elasticites est base sur des regressions apparemment independantes (SUR) et sur la minimisation des moindres carres en trois etapes (3SLS). Contrairement aux etudes anterieures, nous avons subdivise la machinerie en trois categories : grosse, moyenne et petite. Nous avons egalement examine l'endogeneite de la quantite d'extrants et des prix des intrants. Les resultats de notre etude illustrent clairement la substitution entre la main-d'œuvre et les trois categories de machinerie et appuient aussi la substitution entre les trois categories de machinerie.
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TL;DR: In this article, the authors use a stochastic frontier approach to study factors affecting economic performance, using a panel data set of 71 countries for the 1980-98 periods to estimate a production frontier with physical capital, human capital, and labor as inputs.
Abstract: A limitation of most empirical cross-country studies that focus on determinants of gross domestic product (GDP) is that they fail to distinguish explicitly between inputs used in production and conditions that facilitate production. For example, physical capital, human capital, and labor are production inputs, whereas the quality of institutions, macroeconomic stability, and market quality are conditions that facilitate production. This article takes this distinction seriously and uses a stochastic frontier approach to study factors affecting economic performance. A panel data set of 71 countries for the 1980-98 periods is used to estimate a production frontier with physical capital, human capital, and labor as inputs. The article also analyzes what drives productive efficiency, using the institutional framework, macroeconomic stability, market quality, and urbanization as possible explanatory factors. Urbanization turns out to be an important determinant, with the rule of law, inflation rate, and market quality also affecting productive efficiency.
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TL;DR: In this paper, the authors investigated the choice of technology of 400 firms that invested in the light manufacturing sector in Thailand over the period 1962 to 1974. And they concluded that firms in Brazil were not forced to use an appropriate technology, since the competitive environment in Brazil allowed inefficient firms to exist.
Abstract: Chronic unemployment continues to exist in many less-developed countries despite rapid economic growth and development. Studies have shown that factors in addition to a factor-price ratio may influence the choice of technology. It was found that foreign firms in Brazil tended to obtain their machinery from their home country. They attributed this behavior to the cost of a complete search for a technology that was appropriate for the factor costs these firms faced in Brazil and to the time constraints under which they operated. It was also concluded that these firms did not search for a lower-cost technology until the cost of obtaining additional information equalled the expected reduction in costs from the technologies that might exist, but were not known to the firm. It was concluded that firms in Brazil were not forced to use an appropriate technology, since the competitive environment in Brazil allowed inefficient firms to exist. The competitive behavior of firms in Brazil encouraged their non-optimizing behavior. Two questions present themselves: (1) what is the extent of this noncost-minimizing behavior, and (2) what reward did the owners and managers of these firms receive in exchange for their forgone profits. This paper answers these questions, based onmore » the choice of technology of 400 firms that invested in the light manufacturing sector in Thailand over the period 1962 to 1974. 68 references.« less
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TL;DR: The authors used a dynamic general equilibrium model to develop estimates of the magnitudes of reduction in excess burden that can be achieved in the United States by incrementally shifting revenue from five broad-based taxes to land, replacing the current progressive income tax with a flat tax, and shifting as much taxation as possible to land.
Abstract: The excess burden of taxes can be reduced by shifting taxes from labor and capital onto land and by replacing progressive taxes with proportional taxes. This article uses a dynamic general equilibrium model to develop estimates of the magnitudes of reduction in excess burden that can be achieved in the United States by (1) incrementally shifting revenue from five broad-based taxes to land, (2) replacing the current progressive income tax with a flat tax, and (3) shifting as much taxation as possible to land.
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Cites background from "Capital-labor substitution and econ..."
...The work of Arrow et al. (1961) on the CES production function generated many publications in the 1960s and 1970s that attempted to estimate the elasticity of substitution in production....
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TL;DR: In this paper, an indirect method for making empirical inference on the elasticity of substitution between capital and labor is proposed, based on theory derived behavioral equations, by conducting comparative statics with respect to this parameter.
23 citations
Cites background or methods from "Capital-labor substitution and econ..."
...Arrow et al. (1961) show that b in the regression qt = a + bwt + t provides an estimate of the elasticity of substitution when labor and product markets are competitive....
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...Furthermore, utilizing the methods proposed by Arrow et al. (1961), I also obtain a crude estimate of the elasticity of substitution equal to 1.39....
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...Furthermore, utilizing the methods proposed by Arrow et al. (1961), I also obtain a crude estimate of the elasticity of substitution equal to 1.39. Estimates of the processes determining the changes in the manufacturing output, hours worked in manufacturing, long-term interest rates, and price inflation are also obtained as byproducts of the analysis. The paper is organized in the following manner. In section 2 some properties of the CES aggregate production function and the most relevant results from Kauppi et al. (2004) are discussed....
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...Furthermore, utilizing the methods proposed by Arrow et al. (1961), I also obtain a crude estimate of the elasticity of substitution equal to 1....
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...The seminal contribution in this respect is Arrow et al. (1961)....
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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