Questions tagged [productivity]

A measure of efficiency in production for some given set of inputs

Filter by
Sorted by
Tagged with
3
votes
1answer
71 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 ...
2
votes
0answers
125 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 ...
0
votes
1answer
18 views

Measurement for the downstream use of a commodity

I am looking to find a measurement that would tell me the size of the market of the downstream use of some particular commodity. For example, salt or wheat would be used by many companies downstream. ...
4
votes
1answer
210 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
0answers
32 views

Data on labour productivity in India

I am trying to find historical data at the district, or ideally at the city-level on labour productivity (by sector, with a special focus on agriculture) or perhaps data on a similar measure?
1
vote
2answers
42 views

Why labor-augmenting technological progress increases employment and wages?

My textbook says that advances in technology typically raise the marginal product of labor and shift the labor demand curve to the right and calls it labor-augmenting technological advances. The book ...
1
vote
2answers
98 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 ...
1
vote
1answer
38 views

Measuring productivity with the Törnqvist index

I have a sample of companies, of which I want to calculate the productivity of each individual firm relative to a hypothetical firm in the industry. Choosing the measurement method was not easy, but ...
4
votes
0answers
19 views

CES aggregator for intermediates with heterogeneous productivity

I'm following Atkeson, Burstein (2019 JPE), and cannot understand the aggregation result. There is measure $M(z)$ of firms with productivity $z$, with production function $$ y(z) = z k(z)^\alpha l(z)^...
108
votes
16answers
19k 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 ...
-1
votes
1answer
37 views

Low oil price and impact

Today I read an artcicle about the falling oil price (maybe it'll go under 30$ per barel the next days). Why is this a bad news? Lower oil price can give an advantage for a higher productivity.
1
vote
1answer
26 views

How would increase labor productivity lead to improved living standards of people in an economy?

I would like to know more about the mechanisms through which higher labor productivity would translate into higher living standards for a population in a given economy.
0
votes
1answer
36 views

BreakEven/productivity/salary/employees

If employees’ salaries are increased by 20%, what is the increase in productivity required to break even? Can someone assist me in solving this question? Productivity = (output per period)/(number ...
0
votes
2answers
27 views

Are there any economic theories around the concept of companies focusing on that which is easier to calcuate?

A lot of the organisations I have worked for have focused on that which is easy to calculate. For example, direct cost savings are often easy to calculate, but analysing the wider implications of a ...
0
votes
1answer
19 views

What is the average percent of value an employee makes which he gets on salary (called)?

I'm looking for any statistics showing the average percent of money employees get from the monetary value they create, primarily from the US or EU. Is there a term for this ratio?
0
votes
2answers
31 views

When does the law of diminishing returns apply?

Law of diminishing returns does not always apply: The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, ...
9
votes
2answers
5k views

Does recycling lead to fewer jobs?

Say I buy a glass bottle, I can either put it in the landfill or recycle it. My understanding is, glass will breakdown into sand. (Not sure how well though, since we sometimes find glass from Roman ...
0
votes
2answers
35 views

Persistent changes in relative prices due to productivity differences

I read a couple of years ago that in the long run (in centuries) the relative price between, say, schooling and agriculture keeps increasing, since the latter sector gets more and more productive, ...
1
vote
1answer
37 views

Why is increased productivity infinitely good

From investopedia: Supply rises with productivity, dropping real prices and increasing real wages; it lifts people out of poverty and allows them to focus on efforts beyond mere survival. I ...
0
votes
2answers
662 views

What counts and doesn't count as rent seeking?

Rent seeking is often associated with lobbying. Investopedia's article on rent seeking states that rent seeking is gaining wealth without "creating" wealth. Is this the only commonly used definition? ...
5
votes
2answers
112 views

Can we see the computer age in the productivity statistics?

Robert Solow famously said: You can see the computer age everywhere but in the productivity statistics This quote is often linked with the productivity paradox (https://en.wikipedia.org/wiki/...
11
votes
5answers
6k 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
votes
3answers
5k 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 ...
4
votes
2answers
275 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 ...
1
vote
2answers
100 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 ...
1
vote
1answer
147 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 (...
1
vote
0answers
16 views

Is the definition of Investment variable in Economics?

I studied that Investment is the expenditure incurred on the procurement of such goods that would help us in production of goods and services. And mainly consists of Fixed and Inventory Investment ...
-1
votes
3answers
62 views

What's a product that historically has always had the same value, and probably will in the future?

Money usually has inflation tied to it, but is there a product that has stayed around the same value world wide for a very long time, and probably will for a very long time as well (something like 100 ...
1
vote
1answer
54 views

Total factor productivity and revenue

On page 116 of The British Industrial Revolution in Global Perspective Robert Allen writes "...the total factor productivity of enclosed farms was 18 per cent higher than that of open fields. If ...
1
vote
1answer
95 views

Tax system is progressive or regressive

Let´s discuss a little! When the direct effect of a tax or transfer policy (compared to what would happen in the absence of the policy) is a reduction in inequality, it is called progressive policy. ...
2
votes
0answers
46 views

How can the number of hairdressers in the UK be up 50% since 2010?

In this recent article, The Economist argues that one of the reasons behind the anaemic recent wage growth in Britain is that the recent job growth has been concentrated in lower-productivity jobs and ...
4
votes
2answers
234 views

Empirical explanation on divergence between productivity and wages since the 70s

There is a well know graph, that shows a tight link between productivity and wages, until the 70s, and a break of the link since: There's a lot of possible explanations for this, I keep hearing more ...
8
votes
4answers
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 ...
1
vote
2answers
31 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 ...
0
votes
1answer
40 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 ...
2
votes
1answer
66 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 ...
2
votes
2answers
255 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
votes
3answers
70 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
vote
3answers
163 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 ...
5
votes
4answers
4k 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 ...
10
votes
2answers
316 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 ...
-1
votes
1answer
29 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, ...
0
votes
1answer
100 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....
3
votes
1answer
46 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
votes
2answers
134 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?
8
votes
4answers
244 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 ...
0
votes
1answer
135 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
vote
1answer
94 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 ...
2
votes
1answer
36 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 ...
1
vote
2answers
3k 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 ...