Topic
Factor price
About: Factor price is a research topic. Over the lifetime, 2764 publications have been published within this topic receiving 86176 citations.
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01 Jan 1984
TL;DR: In this paper, the authors define an indigenous technology as a local capacity to create/adapt/modify technology, which includes the local development of technology already known elsewhere and the local modification of imported technologies.
Abstract: What is indigenous technology? I take it to be a local capacity to create/adapt/modify technology. In other words, as well as the creation of some completely new technology, it includes the local development of technology already known elsewhere and the local modification of imported technologies.
21 citations
TL;DR: In this paper, the authors study a duopoly market in which customers are heterogeneous, and can be segmented as price or time sensitive, and study how competition affects price and lead time differentiation of the firms in the presence of different operations strategy (shared versus dedicated capacity), product substitution and asymmetry between the competing firms.
Abstract: We study a duopoly market in which customers are heterogeneous, and can be segmented as price or time sensitive. Each firm tailors (differentiates) its products/services for the two customer classes solely based on guaranteed lead time and the corresponding price. Our objective is to understand how competition affects price and lead time differentiation of the firms in the presence of different operations strategy (shared versus dedicated capacity), product substitution and asymmetry between the competing firms. Our results suggest that when firms use dedicated resources to serve the two market segments, pure price competition always tends to decrease individual prices as well as price differentiation, irrespective of the market behaviour. Further, the effect of competition is more pronounced when customers are allowed to self-select, thereby introducing substitutability between the two product options. On the other hand, when firms compete in time, in addition to price, the effect of competition on produ...
21 citations
TL;DR: In this paper, the same relative factor prices can entail an infinity of relative goods prices depending upon the composition of tastes and demand, and trade's equalization of goods prices is compatible with factor-returns inequality.
Abstract: Sans joint products, relative factor prices do determine relative goods prices. Free trade in goods thus can hope to equalize factor returns when this relationship is monotone and therefore uniquely reversible. However, when joint production obtains, often the same relative factor prices can entail an infinity of relative goods prices depending upon the composition of tastes and demand. In consequence, trade's equalization of goods prices is compatible with factor-returns inequality. Generic and singular relationships are described.
21 citations
Posted Content•
TL;DR: This article developed a model of industry dynamics to capture these properties and a related econometric framework to infer adjustment costs from the observed ratios of factor responses to output responses, finding relatively precise evidence of moderate adjustment costs.
Abstract: Adjustment costs determine the dynamics of the response of an industry's output to a shift in demand. Absent any adjustment costs, an increase in demand not accompanied by any change in factor prices raises output, labor, capital, and materials in the same proportion. In the presence of adjustment costs, the elasticity of the response of factors with higher costs is less than one while the elasticity of those without adjustment costs exceeds one. I develop a model of industry dynamics to capture these properties and a related econometric framework to infer adjustment costs from the observed ratios of factor responses to output responses. I find relatively precise evidence of moderate adjustment costs.
21 citations
TL;DR: In this article, the authors used a repeat-sales methodology to find that estimates of house price risk based on aggregate house price indices substantially underestimate the true size of house prices risk.
21 citations