John McDonald and G. D. Snooks
- Published in print:
- 1986
- Published Online:
- November 2003
- ISBN:
- 9780198285243
- eISBN:
- 9780191596636
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285248.003.0009
- Subject:
- Economics and Finance, Economic History
‘Economic production functions’ describes the characteristics of deterministic production functions used in the analysis of Domesday production. These include the Cobb–Douglas, Constant Elasticity of ...
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‘Economic production functions’ describes the characteristics of deterministic production functions used in the analysis of Domesday production. These include the Cobb–Douglas, Constant Elasticity of Substitution, Mukerji, Sato, Generalized Linear, Generalized Quadratic, and production functions.Less
‘Economic production functions’ describes the characteristics of deterministic production functions used in the analysis of Domesday production. These include the Cobb–Douglas, Constant Elasticity of Substitution, Mukerji, Sato, Generalized Linear, Generalized Quadratic, and production functions.
Robert C. Feenstra
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262062800
- eISBN:
- 9780262289375
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262062800.001.0001
- Subject:
- Business and Management, International Business
The application of the monopolistic competition model to international trade by Elhanan Helpman, Paul Krugman, and Kelvin Lancaster was one of the great achievements of international trade theory in ...
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The application of the monopolistic competition model to international trade by Elhanan Helpman, Paul Krugman, and Kelvin Lancaster was one of the great achievements of international trade theory in the 1970s and 1980s. Monopolistic competition models have required new empirical methods to implement their theoretical insights, however, and this book describes methods that have been developed to measure the product variety of imports and the gains from trade that are due to product variety. It first considers the consumer benefits from having access to new import varieties of differentiated products, and examines a recent method to estimate the elasticity of substitution (the extent of differentiation across products) and to use that information to construct the gains from import variety. The book then examines claims of producer benefit from export variety, arguing that the self-selection of the more productive firms (as the low-productivity firms exit the market) can be interpreted as a gain from product variety. It makes use of a measurement of product variety known as the extensive margin of exports and imports. Finally, the book considers an alternative approach to quantifying the gains due to product variety by comparing real GDP calculated with and without the extensive margin of trade.Less
The application of the monopolistic competition model to international trade by Elhanan Helpman, Paul Krugman, and Kelvin Lancaster was one of the great achievements of international trade theory in the 1970s and 1980s. Monopolistic competition models have required new empirical methods to implement their theoretical insights, however, and this book describes methods that have been developed to measure the product variety of imports and the gains from trade that are due to product variety. It first considers the consumer benefits from having access to new import varieties of differentiated products, and examines a recent method to estimate the elasticity of substitution (the extent of differentiation across products) and to use that information to construct the gains from import variety. The book then examines claims of producer benefit from export variety, arguing that the self-selection of the more productive firms (as the low-productivity firms exit the market) can be interpreted as a gain from product variety. It makes use of a measurement of product variety known as the extensive margin of exports and imports. Finally, the book considers an alternative approach to quantifying the gains due to product variety by comparing real GDP calculated with and without the extensive margin of trade.
Clas Eriksson
- Published in print:
- 2013
- Published Online:
- April 2015
- ISBN:
- 9780199663897
- eISBN:
- 9780191808678
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199663897.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter describes the production technology that is typically used in basic economic growth models and represented by a production function with constant returns to scale. It demonstrates how to ...
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This chapter describes the production technology that is typically used in basic economic growth models and represented by a production function with constant returns to scale. It demonstrates how to express variables and the production function in intensity forms, such as per capita income, and how to compute the income shares of various production factors. It also considers the concept of elasticity of substitution.Less
This chapter describes the production technology that is typically used in basic economic growth models and represented by a production function with constant returns to scale. It demonstrates how to express variables and the production function in intensity forms, such as per capita income, and how to compute the income shares of various production factors. It also considers the concept of elasticity of substitution.
Charles Perrings
- Published in print:
- 2021
- Published Online:
- May 2021
- ISBN:
- 9780190613600
- eISBN:
- 9780190613648
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190613600.003.0007
- Subject:
- Economics and Finance, Public and Welfare
Chapter 7 considers the substitutability between produced and natural capital—assets used in the production of goods and services, and between environmental and other goods and services. It shows the ...
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Chapter 7 considers the substitutability between produced and natural capital—assets used in the production of goods and services, and between environmental and other goods and services. It shows the ways in which the limits of substitutability are captured in both production and utility functions, and what this means for conservation. The chapter also discusses the relation between substitutability and the value of environmental inputs, using concepts of gross substitutability and complementarity, and the elasticity of substitution. The authors also note that the relative value of environmental inputs is frequently dependent on the environmental conditions under which production takes place.Less
Chapter 7 considers the substitutability between produced and natural capital—assets used in the production of goods and services, and between environmental and other goods and services. It shows the ways in which the limits of substitutability are captured in both production and utility functions, and what this means for conservation. The chapter also discusses the relation between substitutability and the value of environmental inputs, using concepts of gross substitutability and complementarity, and the elasticity of substitution. The authors also note that the relative value of environmental inputs is frequently dependent on the environmental conditions under which production takes place.
Karen Pittel, Frederick van der Ploeg, and Cees Withagen (eds)
- Published in print:
- 2014
- Published Online:
- January 2015
- ISBN:
- 9780262027885
- eISBN:
- 9780262319836
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262027885.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Too rapidly rising carbon taxes or the introduction of subsidies for renewable energies induce owners of fossil fuel reserves to increase their extraction rates for fear of their reserves becoming ...
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Too rapidly rising carbon taxes or the introduction of subsidies for renewable energies induce owners of fossil fuel reserves to increase their extraction rates for fear of their reserves becoming worthless. Fossil fuel use is thus brought forward. The resulting acceleration of global warming and counter-productivity of well-intended climate policy has been coined the Green Paradox by Hans-Werner Sinn and is the intertemporal analogue of the often discussed problem of carbon leakage in the global economy. How robust are these insights? The answer is it depends. These policies typically induce fossil fuel owners to also leave more reserves unexploited in the crust of the earth, which limits the total stock of carbon in the atmosphere and thus curbs global warming ultimately. This volume presents a range of studies which extends the basic analysis to allow for clean energy alternatives such as solar and wind power, dirty energy alternative such as coal and the tar sands, the different elasticities of substitution between all these energy sources, and the intricate strategic issues between different countries on the globe. This offers deeper and more nuanced insights into the Green Paradox with some refreshing policy perspectives.Less
Too rapidly rising carbon taxes or the introduction of subsidies for renewable energies induce owners of fossil fuel reserves to increase their extraction rates for fear of their reserves becoming worthless. Fossil fuel use is thus brought forward. The resulting acceleration of global warming and counter-productivity of well-intended climate policy has been coined the Green Paradox by Hans-Werner Sinn and is the intertemporal analogue of the often discussed problem of carbon leakage in the global economy. How robust are these insights? The answer is it depends. These policies typically induce fossil fuel owners to also leave more reserves unexploited in the crust of the earth, which limits the total stock of carbon in the atmosphere and thus curbs global warming ultimately. This volume presents a range of studies which extends the basic analysis to allow for clean energy alternatives such as solar and wind power, dirty energy alternative such as coal and the tar sands, the different elasticities of substitution between all these energy sources, and the intricate strategic issues between different countries on the globe. This offers deeper and more nuanced insights into the Green Paradox with some refreshing policy perspectives.
Tullio Jappelli and Luigi Pistaferri
- Published in print:
- 2017
- Published Online:
- October 2017
- ISBN:
- 9780199383146
- eISBN:
- 9780199383160
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199383146.003.0002
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The life-cycle model yields a number of important empirical predictions about consumption and saving behavior. First, the growth rate of consumption depends on the difference between the expected ...
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The life-cycle model yields a number of important empirical predictions about consumption and saving behavior. First, the growth rate of consumption depends on the difference between the expected real interest rate and the rate of time preference and varies with the elasticity of intertemporal substitution. Second, individuals seek to smooth the marginal utility of consumption over time. Third, young consumers should be accumulating resources for retirement, and hence have an adequate level of wealth at retirement. Finally, the elderly should be decumulating resources. To test these predictions, one can draw on a vast array of data on interest rates, consumption, income, and wealth. Some come from time series and national accounts, others from cross-sectional or longitudinal surveys of households. This chapter introduces stylized facts that emerge from a first examination of such data, pointing out the merits but also the drawbacks of the available sources.Less
The life-cycle model yields a number of important empirical predictions about consumption and saving behavior. First, the growth rate of consumption depends on the difference between the expected real interest rate and the rate of time preference and varies with the elasticity of intertemporal substitution. Second, individuals seek to smooth the marginal utility of consumption over time. Third, young consumers should be accumulating resources for retirement, and hence have an adequate level of wealth at retirement. Finally, the elderly should be decumulating resources. To test these predictions, one can draw on a vast array of data on interest rates, consumption, income, and wealth. Some come from time series and national accounts, others from cross-sectional or longitudinal surveys of households. This chapter introduces stylized facts that emerge from a first examination of such data, pointing out the merits but also the drawbacks of the available sources.
