Maintenance expenditures and indeterminacy under increasing returns to scale

This paper develops a one-sector real business cycle model in which competitive firms allocate resources for the production of goods, investment in new capital and maintenance of existing capital. Firms also choose the utilization rate of existing capital. A higher utilization rate leads to faster capital depreciation, and an increase in maintenance activity has the opposite effect. We show that as the equilibrium ratio of maintenance expenditures to GDP rises, the required degree of increasing returns for local indeterminacy declines over a wide range of parameter combinations. When the model is calibrated to match empirical evidence on the relative size of maintenance and repair activity, we find that local indeterminacy (and belief-driven fluctuations) can occur with a mild and empirically-plausible degree of increasing returns: approximately 1.08.     

论股票质押贷款及其模式创新

本文在分析报酬递增律在市场营销中的作用机制的基础上进一步阐述了企业在组织市场营销的过程中如何利用报酬递增律实现市场的快速扩张。并在提出实现报酬递增的一般方法的同时 ,作者还提醒实际操作者要注意成长上限的发生。     

Verdoorn's law and increasing returns to scale in the UK regions, 1968-91: some new estimates based on the cointegration approach

The Johansen approach to estimating long-run cointegration vectorsis used with 1968–91 UK region by industry data to estimatereturns to scale. Thus, this approach has the advantages ofincluding a measure of capital, it overcomes the simultaneityproblems associated with the single-equation Verdoom law, andit involves estimating a correctly specified dynamic model inwhich is embedded the long-run solution(s). The results indicatethat there is substantial evidence that increasing returns arethe norm for the majority of manufacturing industries in Britishregions.     

The optimal length of a patent with variable output elasticity and returns to scale in R&D

This paper extends the pure theory of patents to make it consistent with the empirical evidence on R&D which shows both variable returns to scale and a variable elasticity of cost reduction with respect to R&D (output elasticity). Using a generalized invention possibility function, the authors show that for a given social rate of discount, a socially optimal patent depends only on output elasticity and demand elasticity. The authors also show that an optimal patent can exist for increasing returns as well as for constant and decreasing returns to R&D. In general, the constant elasticity assumption overestimates the optimal life of a patent.     

The direct impact of the relocation of farm labour on Chinese grain production

The shift from collective to household-based farming and the move towards a market economy have increased the opportunity cost of grain production and caused a withdrawal of labour from grain farming in China. Since Chinese grain production is important to both China and the world, there are concerns about whether such a farm labour relocation will have a destructive impact on China's grain production. The previous production function studies ignored the effects of changes in labour quantity and quality on grain production. Using recently available sample survey data on Chinese farm households, this paper incorporates production function analysis with human capital analysis to examine the direct impact of the relocation of farm labour on China's grain production. It has found that the relocation of farm labour has not harmed the Chinese grain production in general, but its impact varies across regions with different factor endowments that affect the choice of farming technology.     

Land productivity,farm size and returns to scale in Pakistan agriculture

It is by now a commonly accepted proposition that economic development must involve both growth and equity. That in many countries the subsidization of the owners of large farms is inequitable is also acknowledged. However, the debate on the ‘efficiency’ of large versus small farms continues. If the owners of large farms are not using the crop acreage with greater efficiency than are the small farmers and if there are no economies of scale, then the imposition of ceilings on farm size and land redistribution are clearly the right options to consider.The object of this study is to test two hypotheses. First, there is an inverse relationship between land productivity and farm size. Second, there are no economies of scale in agricultural production. The tests are performed by regression analysis on the farm-level data collected from Pakistan by the author in 1974. The merit of this study is that it deals with a country which, with a few other underdeveloped countries, has been a beneficiary of the ‘Green Revolution’. The available studies on Pakistan agriculture are limited to the aggregate analyses. Interregional micro-level studies are almost non-existent.     

An alternative method of measuring economic efficiency: The case of grain production in China

The objective of this paper is to suggest a simple method to gauge the economic efficiency of firms, when there are no reliable price data. Applying the suggested method on the recent Chinese farm-household survey data collected during 1993 and 1994, this study shows that majority of grain farmers in China are not producing at the optimum levels which yield maximum profits. The analysis also indicates that output can be increased by consolidating rather than further segmenting the operational area of grains.     

The production ceiling according to the united nations convention on the law of the sea

Zusammenfassung Die Produktionsobergrenze gem?Β der UN-Seerechts-Konvention. — Das Recht, Tiefseebergbau zu betreiben, bedarf einer Produktionserlaubnis der Internationalen Tiefseebeh?rde. Diese Konzessionen unterliegen insbesondere w?hrend der sogenannten Interimsperiode bestimmten Beschr?nkungen. In diesem Aufsatz wird gezeigt, in welcher Beziehung diese Interimsperiode zu anderen zeitlichen Bestimmungen steht, die für die Festlegung der Produktionsobergrenze maΒgebend sind. Es wird auch demonstriert, wie die Produktionsobergrenze ermittelt wird, wozu geh?rt, den Trend des Nickelverbrauchs zu berechnen. Verschiedene Einflüsse der Trendrate werden kurz betrachtet, so die L?nge der Zeitreihe oder der Zeitpunkt der Berechnung. Eine Analyse des Textes der Seerechts-Konvention ergibt, daΒ eine Revision erforderlich ist, weil sich der Text nicht mit den Vorstellungen vereinbaren l?Βt, die implizit mit einer konstanten Wachstumsrate des Nickelverbrauchs verbunden sind. Ferner wird dargestellt, daΒ die Produktionsobergrenze auf sehr einfache Weise von der Wachstumsrate und von der Periode, für welche die Berechnungen durchgeführt werden, abh?ngt. Dieses Ergebnis dürfte die bisher mit langwierigen numerischen Argumenten belastete Diskussion vereinfachen. Im SchluΒabschnitt werden neben den Vorteilen einer Versteigerung der Schürfrechte die Konsequenzen betrachtet, die sich ergeben, wenn ein einzelnes Metall als Referenz bei der Berechnung des Trends verwendet wird.

---

Résumé Le plafond de production d’aprés la Convention d’ONU sur la Loi de la Mer. — L’exploitation miniére des fonds marins des nodules polymétalliques sera soumise aux autorisations de production de l’Autorité Internatonale des Fonds Marins. Ces autorisations sont liées aux certaines limites, particuliérement pendant la période intérimaire. Dans cet article l’auteur démontre la relation de cette période intérimaire aux autres intervalles qui sont importants pour déterminer le plafond de production. Puis il démontre comment on trouve le plafond de production. Cela inclut de calculer la tendance de la consommation de nickel dont le taux de croissance dépend, par example, de la longueur des séries des données ou de la période des calculs. Une analyse du texte de la Convention de la Loi de la Mer révéle qu’il faut la réviser parce qu’elle n’est pas consistante avec l’idée implicite dans un taux constant de croissance de la consommation de nickel. Il est démontré de plus que le calcul du plafond de production dépend d’une trés simple maniére du taux de croissance et de la période pour laquelle on fait les calculs. Ce résultat peut simplifier les discussions qui jusqu’à maintenant sont liées aux arguments numériques ennuyants. Finalement, l’auteur discute les conséquences si l’on utilise un seul métal de référence pour calculer la tendance.

---

Resumen El techo de producción de acuerdo a la Convención de las Naciones Unidas sobre el Derecho del Mar. — Más bien que licitar los derechos para realizar actividades mineras en los fondos marinos, la mineria de nódulos polimetálicos sera objeto de autorizaciones de producción por parte de la Autoridad Internacional del Fondo Marino. Estas autorizaciones deben cumplir con ciertos limites. Esto es válido en particular durante el llamado periodo de transición. En este articulo se muestra cómo este periodo de transition se relaciona con otros periodos de intervalo relevantes para determinar el techo de producción. Se muestra en seguida cómo se encuentra el techo de producción. Esto involucra el cálculo de una linea de tendencia del consumo de niquel. Se pasa brève revista a varias influencias e implicancias sobre la tasa de crecimiento de esta linea de tendencia, como la extension de las series de datos o el tiempo de cálculo. Un análisis del texto de la Convención sobre la Ley del Mar rèvèla que necesita de una revision, ya que no concuerda con la idea implfcita en una tasa de crecimiento constante del consumo de niquel. Se demuestra adicionalmente que el cálculo del techo de producción depende en una manera muy simple de la tasa de crecimiento y del periodo para el cual se realizaron los cálculos. Esto deberia ayudar a simplificar las discusiones que hasta el momenta han estado atadas a largos argumentas numèricos. En una sección final se observan brevemente las consecuencias de usar un metal de referenda en el cálculo de la linea de tendencia.

     

The law of increasing of the final price and the law of management of the final price in the practice in the today economic crisis

The two described economic laws which are developed by the author before 10 years are very important for the marketing process in the economic crisis nowadays. Different methods and procedures developed by the author on the ground of his observations of many years on the market and formed respectively in theory and laws and practices to be applied in the contemporary life of every company acting on the market in the today economic worldwide crisis have been presented.     

Trade within an industry in the presence of vertical product differentiation and dynamic increasing returns

This paper investigates a case of trade with dynamic learning, a continuum of varieties of a vertically differentiated product, and two countries differing only slightly in population size. The results are as follows. Since increasing returns continuously allow consumers to afford higher-quality versions of the good, a quality-based product cycle is generally required for the two initial market shares to persist over time; however, with dynamic learning the conditions for such a cycle to take place are severe. Then, in spite of the self-reinforcing nature of the pattern of spezialization, one of the two countries' market segments (the lower-quality one) is likely to shrink endogenously over time.     

The Impact of R&D Cooperations and Mergers in Pharmaceuticals on Research Activities and Drugs Offered on the Market

In the last 10 years, the pharmaceutical industry has experienced steep, unprecedented price increases which are frequently attributed to increasing drug development costs. To cope with rocketing development costs, companies engage in Research and Development (R&D) cooperations. We study the impact of R&D cooperations on firms' research activities and drugs offered on the market. Using a comprehensive dataset, we find that R&D cooperations formed at the early stage of the drug development process increase the number of R&D projects and the number of drugs offered on the market. Late stage R&D cooperations, formed among larger firms in technology and product markets, increase firms' research activities, but reduce the number of drugs launched on the product market. Results suggest that large firms cooperating in the late research stage re‐optimize their R&D pipelines and eliminate similarly aligned research projects.     

The returns to invention during the British industrial revolution

It was a commonplace among contemporaries, and remains received wisdom today, that inventors were poorly remunerated during the industrial revolution. Adapting a dataset of 759 British inventors, this article presents the first large‐scale attempt to examine the issue systematically. Using probate information, the article shows that inventors were extremely wealthy relative to the adult male population. Inventors were also significantly wealthier than another group who would have received a similar inheritance (in terms of both financial and social capital) and entered similar occupations: their brothers. Their additional wealth was derived from inventive activities: invention paid.     

Intergenerational analysis of the donating behavior of parents and their offspring

Using data drawn from the U.S. Panel Study of Income Dynamics, we explore the relationship between the donating behavior of parents and that of their children aged less than 18 which gives a direct insight into whether an intergenerational relationship in donating behavior exists. Furthermore, we exploit information relating to whether or not parents encourage their children to donate to charity by talking to them about donating to unveil information related to the intergenerational transmission of philanthropic behavior. Our findings suggest that an intergenerational correlation is only present in the absence of a control for whether the parent talks to the child about donating. The effect from the parent talking to their offspring is associated with an increased likelihood that the child donates by approximately 10 percentage points, a finding which is robust to a number of different estimation strategies.