Theory of production

doi:10.1016/B978-0-12-465150-0.50011-3

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Theory of production

Book Chapter•DOI•

Theory of production

Aroop K. Mahanty¹•Institutions (1)

University of Northern Colorado¹

01 Jan 1980-pp 145-161

TL;DR: In economics, the final or finished product is the output, while the resources used for production are the inputs as mentioned in this paper, and a producer's primary aim is to produce and sell the goods, services, and make profits.

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Abstract: This chapter focuses on the motivations, objectives, and decisions of the producer. A producer's primary aim is to produce and sell the goods, services, and make profits. In economics terminology, the final or finished product is the output, while the resources used for production are the inputs. The production method, or a combination of methods and processes, is called technology. The production function is a technical relationship between the output and the inputs under a specified set of conditions. More complex functions relate many different forms of output to several variables. The inputs may be classified as being either fixed or variable, depending on the circumstances. Those inputs that may be varied are usually called variable inputs, while those whose quantities are invariant are referred to as fixed inputs. Production theory is discussed in terms of either the short run or the long run. These “runs” do not necessarily imply different lengths of time, but rather the circumstances surrounding production.

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Book•

Visible Learning: A Synthesis of Over 800 Meta-Analyses Relating to Achievement

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John Hattie¹•Institutions (1)

University of Melbourne¹

19 Nov 2008

TL;DR: This meta-analyses presents a meta-analysis of the contributions from the home, the school, and the curricula to create a picture of visible teaching and visible learning in the post-modern world.

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Abstract: Preface Chapter 1 The challenge Chapter 2 The nature of the evidence: A synthesis of meta-analyses Chapter 3 The argument: Visible teaching and visible learning Chapter 4: The contributions from the student Chapter 5 The contributions from the home Chapter 6 The contributions from the school Chapter 7 The contributions from the teacher Chapter 8 The contributions from the curricula Chapter 9 The contributions from teaching approaches - I Chapter 10 The contributions from teaching approaches - II Chapter 11: Bringing it all together Appendix A: The 800 meta-analyses Appendix B: The meta-analyses by rank order References

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6,776 citations

Journal Article•DOI•

Getting Income Shares Right

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Douglas Gollin

01 Apr 2002-Journal of Political Economy

TL;DR: The authors showed that the usual approach underestimates labor income in small firms, and several adjustments for calculating labor shares were identified and compared, yielding labor shares for most countries in the range of.65 −.80.

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Abstract: Many widely used economic models implicitly assume that income shares should be identical across time and space. Although time‐series data from industrial countries appear consistent with this notion, cross‐section data generally appear to contradict the assumption. A commonly used calculation suggests that labor shares of national income vary from about .05 to about .80 in international cross‐section data. This paper suggests that the usual approach underestimates labor income in small firms. Several adjustments for calculating labor shares are identified and compared. They all yield labor shares for most countries in the range of .65–.80.

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1,935 citations

Book Chapter•DOI•

The Econometric Approach to Efficiency Analysis

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William H. Greene

01 Jan 2008

TL;DR: The Econometrics of Panel DataSpringer Handbook of Science and Technology IndicatorsPanel Data and Econometric Methods for Productivity Measurement and Efficiency Analysis as discussed by the authors, and a Practitioner's Guide to Stochastic Frontier Analysis Using StataBenchmarking for Performance EvaluationEssays on Microeconomics and Industrial OrganisationHealth System EfficiencyInternational Journal of Production EconomicsEconometric Analysis of Model Selection and Model TestingInternational Applications of Productivity and Efficiency analysisAdvanced Robust and Nonparametric Methods in Efficiency Analysis

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Abstract: The Econometrics of Panel DataSpringer Handbook of Science and Technology IndicatorsPanel Data EconometricsThe Econometrics of Panel DataA Practitioner's Guide to Stochastic Frontier Analysis Using StataBenchmarking for Performance EvaluationEssays on Microeconomics and Industrial OrganisationHealth System EfficiencyInternational Journal of Production EconomicsEconometric Analysis of Model Selection and Model TestingInternational Applications of Productivity and Efficiency AnalysisAdvanced Robust and Nonparametric Methods in Efficiency AnalysisEconometrics and the Philosophy of EconomicsThe Measurement of Productive EfficiencyMeasuring Efficiency in Health CareFinancial, Macro and Micro Econometrics Using REconometric Analysis of Cross Section and Panel DataApplied EconometricsProductivity and Efficiency AnalysisEconometric Model SelectionProductivity and Efficiency AnalysisStochastic Frontier AnalysisThe Oxford Handbook of Health EconomicsThe Measurement of Productive Efficiency and Productivity GrowthNew Directions in Productivity Measurement and Efficiency AnalysisA Primer on Efficiency Measurement for Utilities and Transport RegulatorsPanel Data EconometricsProduction and Efficiency Analysis with RApplications of Modern Production TheoryThe Measurement of Productive EfficiencyNonparametric Econometric Methods and ApplicationAn Introduction to Efficiency and Productivity AnalysisHealth, the Medical Profession, and RegulationThe Analysis of Household SurveysData Envelopment AnalysisProgramming Collective IntelligenceEfficiency AnalysisProductivity and Efficiency AnalysisMeasurement of Productivity and EfficiencyProduction Frontiers

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1,144 citations

Cites background or methods or result from "Theory of production"

...Coelli (2000) and Cuesta and Orea (2002) consider these issues theoretically....
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...Coelli (2000) and Cuesta and Orea (2002) consider these issues theoretically. Note that these methodologically oriented examinations come after the leading applications of the distance function technique (e.g., Sickles et al., 2002; Coelli and Perelman, 1996, 1999, 2000; all of which used the translog form as the modeling platform). The distance function bears close resemblance to other specifications for studying efficiency. Thus, there have been comparisons of inefficiency estimates obtained from estimated distance functions to the counterparts obtained from DEA studies (see Coelli and Perelman, 1999; Sickles et al., 2002). Atkinson, Fare, and Primont (2003) used the concept of the distance function to derive a shadow cost function with which they studied allocative inefficiency. Finally, O’Donnell and Coelli (2005) forced the classical curvature (regulatory) conditions on their estimated distance function. They suggested their method of imposing restrictions on parameters in a Bayesian framework as an alternative to Kleit and Terrell (2001)—they used a Metropolis-Hastings procedure as opposed to Kleit and Terrell’s accept/reject iteration....
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...the concept perhaps to its logical limit, it is worth noting that the first empirical analyses of production functions, by Cobb and Douglas (1928), were precisely studies of the functional distribution of income between capital and labor in the context of an aggregate (macroeconomic) production function....
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...Coelli (2000) and Cuesta and Orea (2002) consider these issues theoretically. Note that these methodologically oriented examinations come after the leading applications of the distance function technique (e.g., Sickles et al., 2002; Coelli and Perelman, 1996, 1999, 2000; all of which used the translog form as the modeling platform). The distance function bears close resemblance to other specifications for studying efficiency. Thus, there have been comparisons of inefficiency estimates obtained from estimated distance functions to the counterparts obtained from DEA studies (see Coelli and Perelman, 1999; Sickles et al., 2002). Atkinson, Fare, and Primont (2003) used the concept of the distance function to derive a shadow cost function with which they studied allocative inefficiency. Finally, O’Donnell and Coelli (2005) forced the classical curvature (regulatory) conditions on their estimated distance function....
[...]
...Coelli (2000) and Cuesta and Orea (2002) consider these issues theoretically. Note that these methodologically oriented examinations come after the leading applications of the distance function technique (e.g., Sickles et al., 2002; Coelli and Perelman, 1996, 1999, 2000; all of which used the translog form as the modeling platform). The distance function bears close resemblance to other specifications for studying efficiency. Thus, there have been comparisons of inefficiency estimates obtained from estimated distance functions to the counterparts obtained from DEA studies (see Coelli and Perelman, 1999; Sickles et al., 2002). Atkinson, Fare, and Primont (2003) used the concept of the distance function to derive a shadow cost function with which they studied allocative inefficiency....
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Posted Content•

Accounting Quality and Firm-Level Capital Investment

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Gary C. Biddle¹, Gilles Hilary²•Institutions (2)

Hong Kong University of Science and Technology¹, Georgetown University²

23 Jun 2006-Social Science Research Network

TL;DR: The authors examined how accounting quality relates to firm-level capital investment efficiency and found that higher quality accounting enhances investment efficiency by reducing information asymmetry between managers and outside suppliers of capital, and that this effect should be stronger in economies where financing is largely provided through arm's-length transactions compared with countries where creditors supply more capital.

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Abstract: This study examines how accounting quality relates to firm-level capital investment efficiency. Our first hypothesis is that higher quality accounting enhances investment efficiency by reducing information asymmetry between managers and outside suppliers of capital. Our second hypothesis is that this effect should be stronger in economies where financing is largely provided through arm's-length transactions compared with countries where creditors supply more capital. Our results are consistent with these hypotheses both across and within countries. They are robust to alternative econometric specifications, different measures of accounting quality and investment-cash flow sensitivity, and numerous control variables.

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626 citations

Journal Article•DOI•

The impact of renewable energy consumption to economic growth: A panel data application

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Roula Inglesi-Lotz¹•Institutions (1)

University of Pretoria¹

01 Jan 2016-Energy Economics

TL;DR: In this paper, the authors investigated the impact of renewable energy consumption on economic welfare by employing panel data techniques and found that the influence of renewable energies consumption or its share to the total energy mix to economic growth is positive and statistically significant.

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523 citations

Cites methods from "Theory of production"

...framework of Fang (2011) that examines the hypothesis within a Cobb-Douglas production function and the econometric methodology employed in Apergis and Payne (2010)....
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References

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Journal Article•DOI•

The division of labor in the firm

[...]

Richard A. Ippolito

01 Oct 1977-Economic Inquiry

TL;DR: In this article, Adam Smith's theory of labor specialization is formulated and tested, and the restrictions in the theory are explicitly derived, and Smith's Theorem that specialization will rise with the output rate is rigorously stated.

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Abstract: In this paper, Adam Smith's theory of labor specialization is formulated and tested. The restrictions in the theory are explicitly derived, and Smith's Theorem — that specialization will rise with the output rate — is rigorously stated. A simple human capital model is then employed to derive testable implications of the theory. Wage equations are estimated for the U.S. shipbuilding industry during World War II. The peculiarities of the war data notwithstanding, the results are strongly supportive of the theory.

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11 citations

Journal Article•DOI•

The Rearranged Work Week: Evaluations of Different Work Schedules

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Thomas A. Mahoney

01 Jul 1978-California Management Review

TL;DR: The five-day forty-hour per week work schedule has been the norm in much of industry for many years as discussed by the authors, however, many firms have adopted flex-time and four-day per week schedules.

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Abstract: The five-day forty-hour per week work schedule has been the norm in much of industry for many years. In recent years, however, many firms have adopted flex-time and four-day per week schedules. Employees working traditional five-day schedules, flex-time, and four-day schedules report their reactions to these work schedules and perceptions of change experienced or anticipated with a different schedule. Most employees react favorably to a change to flex-time or the four-forty schedule. Preference for one or the other schedule appears to be a function of leisure time orientation, which is related to the age and sex of the worker.

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11 citations

Journal Article•DOI•

Household production theory, the lancaster hypothesis and the price‐quality relationship

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D. Morris¹•Institutions (1)

University of Nottingham¹

01 May 1978-Bulletin of Economic Research

5 citations

Journal Article•DOI•

Some evidence on the productivity of qualified manpower in Britain : a note

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