An expanded knowledge production function

This paper uses a theoretical motivation for an Expanded Knowledge Production Function(EKPF) that encompasses both path dependence and spatial spillovers to search for evidences inBrazil using a Dynamic Spatial Panel Data approach. The purpose is to identify the determinantsof knowledge production in the 2005-2015 period as well as its temporal evolution, usinginnovation patents as proxies. Regarding its spatial distribution, we identified a North-Southdisparity for the knowledge production in Brazil, with Southeast and South producing alarge part of the country’s patents. Based on the EKPF, we confirmed the importance ofpath dependence and knowledge spillovers to explain the Brazilian innovation. In addition,population density, which generates Jacobian externalities and economies of agglomeration, isan important structural feature in the short run while the number of researchers in universitiesand an increased economic scale are essential to knowledge production in the long run.

The Economies Scale of Agricultural Product Processing Companies Listed on Stock Exchange in Hochiminh City and Hanoi, Vietnam

This study applied the Cobb-Douglas production function to identify economics efficiency of 18agricultural product processing companies listed on the Stock exchange in Ho Chi Minh City(HOSE) and Hanoi (HNX) in such sectors as fisheries, rubber and sugar in the period 2009-2013.The method employed FEM and REM models using panel data. The results showed thatperformance of all and each sector in this study has increasing returns to scale. In particular,firms in the sectors of fisheries and rubber primarily relied on raising capital to increasetheiroutput value, while those in the sugar sectormainly increase labors toimprove theiroutput value. Finally, the paper also provides some policy implications to improve theefficiency of capital and labor in the agricultural product processing companies.

Improving the methodology for creating a medical service based on the costs of its production

Background. Currently, the multichannel nature of financial flows determines the multivariate methods of payment for medical services, which are also influenced by the type of medical care, conditions, form of its provision, and type of institution. As a result, the cost of a medical service can vary significantly not only in different, but even in one medical organization. The lack of a unified methodological approach puts healthcare organizations in unequal conditions, as a result, public sector medical organizations are forced to seek additional resources to provide medical care to the population that meets the standards. None of the current methods for determining the cost of a medical service reflects its actual cost, since it does not take into account the structure of production costs.The aim. To improve the methodology for the formation of the cost of public services in the health care system, taking into account their resource intensity.Materials and methods. The study included the analysis of the forms of state statistical observation of medical organizations of the Irkutsk region, reports of the federal and regional accounting chambers, industry regulations, materials of scientific periodicals, conferences, monographic studies, including on the Internet; comparison of the cost of medical services in various medical organizations of the Irkutsk region; modeling methods for calculating the cost of medical services using the Cobb – Douglas production function.Results. A unified classification of medical services based on their resource intensity and an improved method of forming the cost of medical services based on the Cobb – Douglas production function are proposed, revealing the dependence of the volume of production on two factors of production – capital and labor; the cost of medical services was calculated using the example of real services provided in one of the medical organizations of the public health sector of the Irkutsk region.Conclusions. The proposed method for determining the cost of a medical service based on its resource intensity makes it possible to determine the real cost of a medical service, the full reimbursement of which will increase the financial stability of medical organizations in the public sector, which will be reflected in the improvement of their material and technical base and, as a result, will increase the quality of medical services.

Dynamic Modeling and Simulation of Urban Domestic Water Supply Inputs Based on VES Production Function

The Gompertz growth curve is used to describe the urban water population, the linear function is used to represent the per capita disposable income, and the domestic water demand is described combined with the factors of population, income, and the water-saving consciousness. The VES production function is used to describe the production function of the domestic water supply. Combined with system dynamics, the supply and demand management model of urban domestic water in Jiangsu province, China, is developed. The process of water supply investment and labor input in the urban domestic water system is studied with two depreciation methods: the straight-line depreciation method and the sum of years digits method. In the case that the water consumption population is expected to decline, four water demand scenarios composed of different per capita disposable income and the growth rate of water-saving consciousness are investigated. Investment and labor input are taken as control variables to conduct water supply and demand simulations for the four scenarios. The results show that the control schemes in all four scenarios reach a balance between water supply and demand. Moreover, the investment of the sum of years digits method is larger than that of the straight-line depreciation method in 2005–2019 but less than that of the straight-line depreciation method in 2020–2034. The sum of years digits method has the characteristics of more depreciation in the early stage and less depreciation in the later stage, which is conducive to timely compensation for the large loss of fixed assets in the early stage.

Profitability, marketing, and resource use efficiency of ginger production in Rukum west, Nepal

The study was designed to investigate the profitability, marketing, and resource use efficiency of ginger production in Rukum west. The sample size of 62 ginger-growing farmers out of 187 farmers was determined using slovin’s formula. In addition, 20 traders from two major market hubs Simrutu and Jhulneta were interviewed. The pre-tested semi-structured interview schedule was administered to interview a randomly selected sample size. Data were analyzed using descriptive and statistical tools, including the Cobb-Douglas production function. Result showed that the average area under ginger cultivation was 0.14 ha. A major portion (46.56%) of the cost was found to be incurred by the seed alone in ginger cultivation. The benefit-cost ratio (2.02) indicates that ginger production enterprise was profitable. The productivity of ginger in the study area was estimated to be 11.39 Mt/ha, while per kg cost of production was found to be (NRs 35.67 = USD 0.30). Most of the gross income (78.85%) was found to be contributed by fresh ginger. Similarly, gross margin, market margin, and producer’s share were found to be 21.16, 33.33, and 62.97%, respectively, for 1 kg of ginger. The indexing technique identified high-cost with low-quality seed and price instability as the major problems associated with the production and marketing of ginger, respectively. Cobb-Douglas production function estimated the value of return to scale at 0.889, implying that ginger production exhibited decreasing returns to scale. A study on resource allocative efficiency revealed that farm yard manure and total labor were underutilized resources while seed rhizome was overutilized resource. Thus, for optimal allocation of resources, expenditure on farm yard manure and total labor need to be increased by 87.374% and 39.908%, respectively. The study concluded that an effort should be made to bridge the gap between optimal resource utilization and current practices. For this, it is prime important to interconnect the combined efforts of ginger growers, provincial government, or any developing partners.

Economic analysis of rice (Oryza sativa L.) cultivation in Gorkha district of Nepal

A study was conducted to analyze the production economics and factors contributing to the gross return of rice production in the Gorkha district of Nepal in 2020, where a rice block was established under the Prime Minister Agriculture Modernization Project (PM-AMP). Altogether, 76 rice-growing farmers were selected as a sample by using a simple random sampling technique. Primary data were collected by using a pre-tested interview schedule, while secondary data were collected by reviewing related literature. The data was analyzed using descriptive statistics, chi-square, independent sample t-tests, and Cobb-Douglas production function. The results showed that the average landholding was 0.74 ha and the average area under rice cultivation was 0.52 ha, with a productivity of 3 mt ha-1. The findings revealed that the cost of rice production for small farmers was significantly higher (NRs. 171466 ha-1) than that for large farmers (NRs. 132088 ha-1). The study reveals that investment in rice cultivation was economically viable in the study area because the overall B: C ratio was greater than one (1.17). The production function analysis reveals that a 10% increase in expenditure on seeds, total labor, and nutrients, keeping all other variables constant, could increase the gross return of rice by 2.97%, 2.19%, and 0.62%, respectively. The sum of coefficients was 0.56, reflecting a decreasing return to scale. Thus, a 100% increase in expenditure on variables presented in the model caused a 56% increase in the gross return of rice production. The findings suggest that human and bullock labor needs to be replaced by the use of farm machinery. Hence, the cost of cultivation would be reduced with the improvement in production and the gross returns of rice cultivation.

Evaluation of Bank Innovation Efficiency with Data Envelopment Analysis: From the Perspective of Uncovering the Black Box between Input and Output

The evaluation of corporation operation efficiency (especially innovation efficiency) has been always a hot topic. The currently popular evaluation methods are data envelopment analysis (DEA) and its improved methods. However, these methods have the following problems: the production process is regarded as a black box, and the actual production relationship between input and output is not analyzed. To solve these problems: (1) the black box theory and production function theory are introduced to uncover the black box of input and output; (2) regression models are used to alleviate the multicollinearity problem of inputs, and the most appropriate model of production relationship is selected; and (3) the results of the production function are compared with the results of the efficiency evaluation from multiple perspectives. Taking rural commercial banks in China as examples to evaluate their innovation efficiency, this article shows the following: (1) with the black box theory and production function theory, the staff, equipment, and intermediate business cost are suitable as innovation input variables, and intermediate business income is suitable as an innovation output variable; (2) the main challenges faced by rural commercial banks are reducing the reliance on human capital investment, strengthening technological innovation, and improving the efficiency of intermediate business cost management, which is hard to reveal with traditional DEA. The method proposed in this article provides an applicable reference for improving DEA method analysis.