All Questions
Tagged with production-function labor-economics
8 questions
1
vote
0
answers
29
views
Toy model equilibrium calculation: How a small system's firm determines wage and price?
I am trying to model a small system, with limited population and a single firm. Personally I have no economic background but only taken a simple microeconomics course and I am quite interested in ...
- 11
0
votes
0
answers
37
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Modelling the optimal mix of labour
I am trying to model the profit maximization decision of a firm that uses two types of labor, workers A and workers B. I started by drawing the marginal product and marginal cost curves (lines, for ...
- 1
5
votes
3
answers
2k
views
Cobb-Douglas Production Function - Finding units of labour to maximise production
Given production function $f(L,K)=16L^\frac{1}{4}K^\frac{3}{4}$, where each unit of labour costs £50 and each unit of capital costs £100 and you have a budget of £500,000. Find the number of units of ...
- 9,842
6
votes
1
answer
111
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Doraszelski and Jaumandreu (2018) Intuition
Doraszelski and Jaumandreu (2018) estimate a CES production function with two forms of productivity shocks (1) labor augmenting and (2) Hicks neutral. They claim that the increase in labor augmenting ...
- 1,380
4
votes
1
answer
129
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Walras Law in a production economy with fixed costs
Consider a price taking firm with fixed costs $fc \geq 0$:
\begin{align*}
\Pi
&=
\max_{n^D} \left\{ P_c F(n^D) - w\times n^D - fc \right\}
\end{align*}
A representative household owns this firm:...
- 340
3
votes
1
answer
83
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Does labor negatively affect output (from empirical perspective)?
I am estimating Cobb-Douglas production function for US using time series framework:
$$Y_t=A_t \times L_t^\alpha K_t^\beta $$
where $Y$ is output, $A$ is $TFP$, $L$ is labor and $K$ is capital. After ...
- 58.5k
4
votes
2
answers
370
views
Convenient S-shaped production function (i.e. with IRS and DRS) to derive a discontinuous demand for labor
Let say that a firm produces a commodity using only one input (i.e. Labor if we suppose to be in the very short run). Then we have a general production function of the following form $y=f(L)$, for $L≥...
- 3,521
3
votes
3
answers
694
views
Cobb-Douglas production function, given $w$ get $r$ regardless of input levels. Why?
There is a market economy with technology given by:
$$Y = K^\alpha L^{1-\alpha} \tag{1}$$
Firms behave competitively and input prices are:
$$r = \alpha K^{\alpha-1}L^{1-\alpha} = \alpha(\frac{L}{K})...
- 129