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2answers
23 views

2 firms production decision for one agent

I'm trying to solve the optimal production $\{x,y\}$ for a risk neutral agent with weight $w$ in firm $X$ and weight $1-w$ in firm $Y$. Each firm has marginal cost $c^X$ and $c^Y$ respectively. The ...
2
votes
1answer
47 views

Does credit really help an economy?

I'm reading Ray Dalio's How the Economic Machine Works, and although I understand the role of credit in an economy, I don't understand whether credit actually adds any value to an economy. Ray says ...
0
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1answer
28 views

Are slacks the same as mix-inefficiency?

On the diagram below it is stated that A' has input slacks as it could reduce the amount of $x_2$ and still be on the frontier (by moving to C). However I recall mix-inefficiency having a similar ...
0
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0answers
21 views

What is the rational behind the “best set of weights” under DEA?

I'm trying to learn the Charnes, Cooper, Rhodes (CCR) model for data envelopment analysis (DEA) and a key idea presented is the notion of a "best set of weights". Whereby you are trying to find the ...
2
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2answers
78 views

Inclusion of firms on the efficient frontier of a Production Possibility Set

I'm working through Cooper's Data Envelopment Analysis, and they are going over Production Possibility Sets. They present 9 firms, each with two inputs and one output: Graphically it easy to see why ...
2
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3answers
54 views

GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
-1
votes
1answer
18 views

Productivity issue

Could someone help with the following? Company produces products of daily demand. It employs workers In number of 12 people (HER) Wages of workers. The costs of hiring and firing are 25 per employee, ...
-2
votes
1answer
56 views

What counts and don't count as rent seeking?

Rent seeking is often associated with lobbying. https://www.investopedia.com/terms/r/rentseeking.asp says that rent seeking is gaining wealth without "creating" wealth. Is this the only commonly used ...
0
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1answer
33 views

Productivity and wages in a task-based model

In a task-based model like the one developed in Acemoglu&Autor 2011 with two types of worker, can the low type have a higher wage with respect to the high type? More specifically: if the ...
0
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0answers
32 views

What is a better measure of (Workers') Productivity than GDP (PPP) per hour worked?

The GDP (PPP) per hour worked is a measure of the productivity of a country when not taking into account unemployment or hours worked per week. GDP (PPP) stands for gross domestic product normalised ...
1
vote
1answer
40 views

How to improve the underperforming construction productivity by correcting its market failures?

Globally, labor-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the ...
0
votes
1answer
43 views

TFP estimation as residual and normality of errors

Economists normally calculate TFP as the residual of a regression on output against K, L, and maybe other variables. However, a well behaved regression is expected residuals to be normal (https://en....
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0answers
40 views

Understanding New Keynesian Phillips Curve

In the framework of NKPC, do these equations have sense: \begin{equation} \Delta w_t = b_1\pi_{t-1} - b_2(w - pr - p - b_3u)_{t-1} \end{equation} \begin{equation} \pi_t = b_3\...
0
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0answers
11 views

Using variables as indices, panel data

I am working on a set of fixed effects panel data regressions in econometrics. One of my variables is an index with a base year, another is a percentage, and there are two other variables that are ...
3
votes
1answer
35 views

When does a high markup mean high productivity? Never?

I was reading this article in VoxEU, where the authors (one is a Professor of Economics at Harvard University) make the case that an increasing average mark-up has accounted for much of the late ...
2
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2answers
116 views

Why are imported Chinese products in India cheaper than those locally produced?

Why an imported Chinese product in India is cheaper compared to a locally manufactured item?
0
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1answer
25 views

Why are readily available productivity data relative, not absolute?

I've been trying to do some cursory research on labor productivity. In the process, I've noticed that the readily available data in the US, as accessed through either BLS or FRED (yes, I know it's the ...
4
votes
4answers
701 views

Labour Saving vs. Labour Augmenting - what is the difference?

It seems reasonable to say that technology generally increases output per unit of labour. Therefore in any factory which has installed new technology one can reasonably expect that for the same ...
0
votes
1answer
38 views

Link between Productivity and Labour Force?

In this article from VoxEU, the author states: By definition growth in output per capita equals growth in labour productivity times growth in hours per capita. The slowdown in productivity ...
1
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1answer
76 views

Has worker productivity decreased since the election of Donald Trump?

Anecdotally, I know that myself and others have felt distracted, depressed and anxious since the election of Donald Trump. Are there any studies that have objectively sought to measure worker ...
1
vote
2answers
917 views

Will SRAS curve definitely shift if LRAS curve shifts?

From what I know, a shift in LRAS is generally caused by a change in maximum productive capacity of an economy, which affects the full-employment output level. Such change in maximum productive ...
2
votes
0answers
98 views

Difference between Value-Added TFP and Gross-Output TFP?

I am working with EU-KLEMS data, and I am using TFP growth as a proxy for technological change. However, there are 2 variables for TFP - TFP based on Gross Output and TFP based on Value Added. I ...
1
vote
1answer
30 views

Government Ownership vs Private Ownership

In a debate concerning long term economic strategy, a representative of a left party was trying to support that privatisation and Small Government which minimizes its own activities is not a viable ...
9
votes
1answer
457 views

Productivity vs real earnings in the US — what happened ca 1974?

Somewhat related to the most recent US elections, I've been researching the whole "white working class" situation, and one strange anomaly has popped up. When one looks at a graph of productivity (...
3
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0answers
16 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
2
votes
2answers
539 views

What are the causes of increase in productivity of labour?

This question has a specific context. While reading Adam Smith's The Wealth of Nations, edited, with notes and marginal summary by Edwin Cannan in 1904, one comes across the following lines on the ...
1
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0answers
30 views

Where to start, to know the cost, in hours of work, necessary to produce one more car (or any other good)?

Let's say I want to buy a car. It costs that, so I can know that, for example, I have to work 3 months to pay for it. But does the car really needs three months of human work to be build? What is the ...
1
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1answer
24 views

What are the different patterns/quantity of employment according to demands of different income ranges?

I don't really have that much knowledge on economics or anything, so perhaps that's something I'd find an answer if I just knew the adequate terminology. Rephrasing/explaining my question: different ...
1
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0answers
48 views

Aggregation in heterogeneous firms models

I am reading the 2014 annual reviews article by Hopenhayn and am struggling to reach the aggregation results he states in the general case of vector of inputs (let's for simplicity assume two inputs, ...
1
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0answers
32 views

What are the currently accepted methods to estimate a firm's productivity?

While there are a lot of methods one can think of, like computing the ratio of profits to assets or profits to sales, apparently it is a difficult problem. It would be useful to know how effectively ...
0
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0answers
11 views

Help me find sources on labor productivity in the IT economics sector

I could not find statistics on this issue. Please give me the link or the documents themselves with statistics of productivity in IT for the last 10 years
2
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3answers
80 views

If automation implicitly increases wealth, why is it generally considered undesirable?

When it comes to the subject of automation, I read that the wide majority of the arguments assume that the profits/savings "vanish", alongside the jobs loss. I see the reasoning above as flawed ...
0
votes
0answers
48 views

Reducing the working hours to 32 hours / week - how much it would affect the prices of commodities?

If the working hours would be reduced from 40 hours / week to 32 hours / week (4 days x 8 hours instead of 5 days x 8 hours), but maintaining the wages at the same levels, then I guess that the price ...
1
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1answer
468 views

If the Number of Workers in an Economy Doubled, Would Productivity Fall to Half its Former Value?

I am assuming that the production function for the economy has constant returns to scale, and all other inputs stay the same. These are the steps I have made to try to answer this question: 1) Y/L = ...
6
votes
1answer
342 views

Why has increased productivity over the last 100 years not affected how much people work?

If we are generally richer and more productive due to better technology and other factors, why do we still work so much? I understand that there are various incentives to work (e.g. implicit status ...
0
votes
1answer
216 views

Under what circumstances is an increase in national output called economic growth?

An increase in output can be achieved in two basic ways. The first scenario: Aggregate demand increases, so supply extends. In this way the economy is making more use of its resources, but there is ...
0
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1answer
706 views

Is America getting to a point where there are many more people than jobs or money to go around? Are times better or worse than 50 years ago? [closed]

Is America headed to a point of too many people, not enough work? Is life for an average American better than 50 years ago? I have asked about automation in my first question. Then I've asked a ...
1
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3answers
137 views

Do machines reduce labor… or so they redistribute, alter, and globally increase labor?

John Stuart Mill famously remarked that labor-saving machines have not saved one minute of labor. More seriously, Marx argued, roughly, that machines can gain temporary market advantage, but cannot ...
9
votes
3answers
2k views

Has the world become poorer?

This question is not backed by serious economic research but mainly by a very simple attempt to look at how the world economy has changed. I am asking whether and why the world has, over the past 50 ...
93
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15answers
17k views

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Decades ago a factory job could support a wife and kids until retirement and they offered insurance, benefits, etc. Now, no more unions, those jobs as well as tech and customer service jobs are ...
2
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0answers
70 views

How does Austrian Economics define Labour Productivity?

Is there a specific Austrian definition in accordance to the concept of Labour Productivity? If Labour Productivity is too broad of a term, then I will qualify to be speaking about it in context of ...
6
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3answers
1k views

Why is Land not considered as a fixed capital?

As far as I know 'Fixed Capital' includes things which don't deteriorate or get used up upto a long, e.g. tools, machinery and building etc. My question is that since Land fulfills this criteria, why ...
2
votes
1answer
27 views

Quarterly industry-level productivity growth?

Are there any quarterly data on industry-level productivity growth (i.e., by NAICS code) in the United States? I've looked around for a while but haven't been able to find anything. BLS publishes ...
8
votes
4answers
186 views

Can higher working hours reduce productivity?

Are there studies about the impact on per-hour output (productivity) of increasing the number of hours worked each week by employees? If every employee works 3hrs/week longer (from 41 to 44hrs), does ...
4
votes
2answers
44 views

Workforce productivity

If I would like to say, in a technical way, that the problem of a place is its lazy people, then I could say that its workforce productivity is low. However, "workforce productivity" is composed by ...
5
votes
2answers
123 views

Has Stack Overflow been economically beneficial to programmer productivity?

Has Stack Overflow an overall positive impact on programmers productivity? On one side, it takes time and effort to ask and answer questions -- thus decreasing productivity. On the other side, ...
1
vote
1answer
91 views

Labour Productivity Growth and Reallocation of Labour

Using a shift-share methodology, labour productivity growth can be arise from productvity growth within a sector (within effect) or reallocation of labour to sectors with higher productivity (...
10
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2answers
252 views

How does GNU software development sustain economically?

I apologise if this question is out of topic, but it is simultaneously an economy and a programming question. If it should go to another SE communality, please indicate me. In theory, GNU software is ...
4
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1answer
77 views

Can capital still be paid its marginal product in the absence of a homogeneous capital stock?

Thomas Piketty's best-selling book on inequality, "Capital in the Twenty-First Century" has attracted a lot of criticism on the right for its data analysis. Less well-known, however, is the criticism ...
2
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2answers
51 views

Why low labour productivity for Govt Services in UK and USA in 2000s?

My labour productivity data for USA and UK show that the "Government services" sector for both countries are below their economies' average. This trend is observed in the 2000s. Are there any ...