Labor Quality, Returns to Scale and the Elasticity of Factor Substitution

1970 ◽  
Vol 52 (2) ◽  
pp. 194 ◽  
Author(s):  
Gordon Philpot
Keyword(s):  
Returns To Scale ◽  
Labor Quality ◽  
Factor Substitution ◽  
Elasticity Of Factor Substitution

scholarly journals Determinants of firm-level technical efficiency: evidence using stochastic frontier approach

2008 ◽  
Vol 5 (3) ◽  
pp. 225-239 ◽  
Author(s):  
Evis Sinani ◽  
Derek C. Jones ◽  
Niels Mygind
Keyword(s):  
Technical Efficiency ◽  
Firm Size ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Budget Constraints ◽  
Stochastic Frontiers ◽  
Firm Level ◽  
Soft Budget Constraints ◽  
Labor Quality ◽  
Enhance Efficiency

By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm’s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.

Factor Substitution, Price Elasticity of Factor Demand and Returns to Scale in Police Production: Evidence from Michigan

1988 ◽  
Vol 54 (4) ◽  
pp. 863 ◽  
Author(s):  
Anthony O. Gyapong ◽  
Kwabena Gyimah-Brempong
Keyword(s):  
Price Elasticity ◽  
Returns To Scale ◽  
Factor Demand ◽  
Factor Substitution

Elasticity of factor substitution and driving factors of energy intensity in China’s industry

2018 ◽  
Vol 30 (3) ◽  
pp. 385-407 ◽  
Author(s):  
Feng Wang ◽  
Yijie Jiang ◽  
Wulin Zhang ◽  
Fang Yang
Keyword(s):  
Technical Progress ◽  
Manufacturing Industry ◽  
Energy Intensity ◽  
Industrial Sector ◽  
Driving Factors ◽  
Rapid Expansion ◽  
Intermediate Input ◽  
Translog Cost Function ◽  
Factor Substitution ◽  
Elasticity Of Factor Substitution

Based on the translog cost function and factor substitution theory, the input and output data from China’s industrial sector and the three sub-sectors during the period 1984–2011 are firstly used to calculate substitution elasticity among capital, labor, energy, and intermediate input. And then from the perspective of factor substitution, the driving factors of energy intensity in China’s industry are explored. The main findings introduced in this paper are listed as follows: firstly, the production of China’s industrial sector is sensitive to changes of energy and labor prices; secondly, except the complementary relationships between energy and labor in the manufacturing industry, and between energy and intermediate input in electricity, gas, and water industry, substitution relationships exist among all other factors; thirdly, the budget constraint of energy consumption is the most effective impetus to the reduction of energy intensity in industrial sector, and factor substitution especially the substitution of capital and labor for energy has an important role in the reduction of energy intensity; fourthly, the rapid expansion of economic scale causes output effect to become the biggest factor of impeding the reduction of energy intensity; fifthly, technical progress has different effects on energy intensities in different industrial sub-sectors, but generally speaking, technical progress does not promote the reduction of energy intensity.

Production Functions with Variable Elasticity of Factor Substitution: Some Analysis and Testing

1968 ◽  
Vol 50 (4) ◽  
pp. 453 ◽  
Author(s):  
Ryuzo Sato ◽  
Ronald F. Hoffman
Keyword(s):  
Production Functions ◽  
Factor Substitution ◽  
Elasticity Of Factor Substitution

Elasticity of Factor Substitution in Police Agencies: Evidence from Florida

1987 ◽  
Vol 5 (2) ◽  
pp. 257 ◽  
Author(s):  
Kwabena Gyimah-Brempong
Keyword(s):  
Police Agencies ◽  
Factor Substitution ◽  
Elasticity Of Factor Substitution
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