Investment demand under log-linear technology

Assuming log-linear technology we show, using simple calculus of variations, that payments to inputs are proportional to values of outputs at all points in time. The derived demand for investment is shown to depend on output, prices and their time derivatives in addition to the second time derivative of the price of capital goods.     

Substitution and expansion effects in production theory: The case of joint production

This paper is concerned with a systematic examination of what happens when a firm that has been in equilibrium at certain prices of inputs and prices of outputs experiences a change in these prices. The mutual effects between inputs and between outputs and the cross effects between inputs and outputs are explored by means of various kinds of decomposition equations in production theory. A definition of the “normal” technology is given to show that inputs are not gross substitutes, nor are outputs, and that the input-output relations are not regressive.     

Estimating the Heckscher–Ohlin model: Inverting the inverse matrix

This paper estimates the Heckscher–Ohlin model with annual US data from 1949 to 2006 for outputs of manufactures and services with inputs of fixed capital assets and the labor force. Difference equation and error correction regressions provide estimated coefficients for the comparative static system. Tariffs on manufactures primarily raise the capital return in the estimated Stolper–Samuelson results. Factor price equalization does not hold for labor and capital. Inverting the estimated system inverse matrix provides evidence on production. The suggestions are capital biased production of manufactures, strong substitution of capital for labor, and strong labor substitution in manufactures.     

成都市环境经济系统的物质流分析

利用物质流分析方法,对2000～2007年成都市环境经济系统中物质输入与输出进行分析,结果表明：（1）在不考虑水的情况下,成都市物质输入与输出总量呈相似的增长趋势,但物质库存量有净增长;固体物质输入量的递增速率大于气体物质输入量的递增速率,物质输出量气体占主体;（2）物质输入与输出强度不断增加,而单位GDP物质输入量与输出量呈快速递减趋势,物质生产力不断上升,表明成都的资源综合利用效率明显提高,区域经济增长和环境压力正在逐步脱钩;（3）水的输入输出量呈上升趋势,但是其强度基本保持不变,用水效率稳步提高。     

Biases in technical efficiency scores caused by intra-input aggregation: mathematical analysis and a DEA application using simulated data

In Data Envelopment Analysis (DEA) applications involving multiple inputs and outputs, inputs are aggregated into the total amounts of each type of input. For example, if input types ‘labour’ and ‘capital’ are used to produce multiple outputs, the total amount of labour used to produce all outputs is treated as one aggregated input and the total amount of capital as another. Resources are not disaggregated into input variables measuring the amount of labour used to produce the first output, the amount of labour used to produce the second output, the amount of labour used to produce the third output and so on, for both labour and capital. It is shown that such intra-input aggregation causes downward bias in reported technical efficiency scores, with variations in bias unrelated to true technical efficiency. Therefore, with few exceptions, any technical efficiency comparisons among DMUs are invalid. The presence of intra-input aggregation bias is demonstrated mathematically, simulation is used to exhibit its severity, and the exceptions that permit intra-input aggregation without causing bias are identified. It is concluded that, for multiple-input, multiple-output DEA applications, inputs must be disaggregated into the amounts used to produce each output in order to validly report technical efficiency, unless one of the exceptions is present.     

A hedonic-output-index-based approach to modeling polluting technologies

Despite some recent criticisms, the conventional radial distance function, which treats undesirable by-products as either frontier shifters or inputs, remains a popular go-to formulation of polluting production processes among practitioners. This unfading popularity is arguably driven by the ability of radial distance functions, unlike alternative directional distance functions, to allow for unit-free multiplicative changes in arguments as well as, by implicitly postulating the radial direction, to free researchers from the dilemma of having to explicitly choose the directional vector. In this paper, we offer a generalization of the standard radial distance function to polluting technologies that can accommodate undesirable by-products in a more economically meaningful way. Specifically, we propose modeling undesirable outputs via a hedonic output index, which is meant to ensure that pollutants are treated as outputs, as opposed to inputs or theoretically unregulated frontier shifters, while also recognizing their undesirable nature. By using a radial input distance function generalized to encompass an (unobservable) hedonic output index of desirable and undesirable outputs, we are able to meaningfully describe relationships between different products (including the complementarity of desirable and undesirable outputs) within producible output sets as well as to represent technically feasible polluting production possibilities given inputs. An empirical application of our methodology to the case of Dutch dairy farms in 2001–2009 demonstrates the complexity of interactions between outputs, thereby attesting to the value of more elaborate representations of production possibilities.     

Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration

This contribution establishes, from a theoretical viewpoint, the relations between the Malmquist productivity indices, that measure in either input or output orientations, and the Luenberger productivity indices, that can simultaneously contract inputs and expand outputs, but that can also measure in either input or output orientations. The main result is that a Malmquist productivity index overestimates productivity changes, since it provides productivity measures that are nearly twice those given by the Luenberger productivity index looking for simultaneous contractions of inputs and expansions of outputs. This relationship is empirically illustrated using data from 20 OECD countries over the 1974–97 period.     

科技投入与科技产出的关联分析及趋势预测

本文基于2002—2007年的年度数据,采用灰色系统理论方法,对我国科技产出与科技投入及其关联关系进行分析和预测。结果显示:目前我国科技成果登记数的发展主要由科技活动人员投入推动,属于低层次的劳动密集型科技发展模式,预计2008—2012年这种状况将得到一定程度的改善;技术市场成交额和发明专利产出数受科技活动经费的影响最大。     

The output efficiency of minority-owned banks in the United States

This study extends prior research on minority-owned banks by examining their output performance. Using a deterministic output distance function, both technical and allocative efficiency are measured. The findings indicate that, with a given set of inputs, minority-owned banks produce less outputs than a comparable group of nonminority-owned banks. Also, both minority-owned banks and nonminority-owned banks fail to allocate outputs in revenue-maximing proportions.     

Re-evaluation of global innovation index based on a structural equation model

The Global Innovation Index (GII) was proposed to observe the innovation capability and efficiency levels of individual countries using input and output factors. However, it does not consider potential structural relationships among factors affecting the innovation performance of a country. In this study, we proposed a structural equation model (SEM) based on the hypothesised national innovation structure among seven factors representing inputs (institution, human capital and research, infrastructure, market sophistication, and business sophistication) and outputs (knowledge and technology outputs, and creative outputs). Using GII data from 2013, we discovered that business sophistication and infrastructure have the strongest direct and indirect effects on creative output, respectively. In addition, a new ranking is obtained based on the fitted SEM. We provide feedback information to improve innovation capabilities.     

Shadow directional distance functions with bads: GMM estimation of optimal directions and efficiencies

Because of its greater flexibility, the directional distance function (DDF) has been employed with increasing frequency to estimate multiple-input and multiple-output production, where inputs and outputs can be good or bad. However, typically researchers make three restrictive assumptions. First, they assume a direction of movement of firm production toward the frontier. Second, they assume that actual quantities of inputs and outputs are allocatively or price efficient. Third, they assume exogeneity of all inputs and all outputs, except for the normalized one. The first contribution of this paper is to include parameters to estimate optimal directions which correspond to the firm’s profit-maximizing (PM) position. The second contribution is to generalize the DDF to a shadow-quantity DDF. This entails adding distortion parameters to each input and output quantity of the DDF, creating shadow quantities. To estimate the shadow quantities and the structural parameters, we form the shadow DDF system, which includes the shadow DDF and all the first-order price equations from the shadow-PM problem. These include prices for bad inputs and bad outputs, where we approximate their missing prices for use in their first-order price equations. The third contribution is that we estimate the shadow DDF system using a Generalized Method of Moments approach, where all variables are potentially endogenous. This approach is simpler than the Bayesian one employed in Atkinson et al. (Estimating efficient production with bad inputs and outputs using latent prices and optimal directions. Working paper, University of Georgia, Athens, 2016), which estimated shadow prices and optimal directions. Using the same data set, both sets of results are qualitatively very similar, although they differ somewhat quantitatively.     

中国制造业技术投入与产出绩效的统计分析

为考察中国制造业技术进步情况,本文将中国26个制造业划分为高、中、低技术含量产业,并分析了各类产业的技术投入与产出绩效统计指标。分析结果表明,在技术投入方面中国制造业总体技术开发投入显著增加,高技术含量制造业的技术投入较其他产业明显占优,一些中低技术含量产业技术投入增长很快,表明有关产业已由单纯依靠劳动力成本竞争逐渐转向依靠技术进步进行市场竞争,但各产业普遍存在着人力投入增长速度落后于物力投入的情况。在技术产出方面,各制造产业的劳动生产率显著提高,高技术含量的产业相对其他产业更加突出,在产品创新方面高技术含量产业总体情况优于中等技术含量产业,后者又优于低技术含量产业,表明产品创新在高、中、低技术含量产业间的分布呈结构优化的趋势。不同产业对提高劳动生产率和产品创新两种市场竞争方式的侧重点有所不同。     

THE DISTRIBUTION OF RESEARCH PERFORMANCE ACROSS AUSTRALIAN UNIVERSITIES, 1992–2003, AND ITS IMPLICATIONS FOR 'BUILDING DIVERSITY'

We contribute to the debate on research performance by comparing the distribution of research inputs and outputs across Australian universities during 1992–2003. We have calculated annual Gini coefficients for various performance measures and Lorenz curves for the final year of the study. Various findings are evident. Research-input measures have remained relatively unevenly distributed across universities. Output measures were more evenly distributed and this exhibited a gradual and rather consistent convergence through time, supporting the view that the research output is being generated gradually more equally across Australia's universities. The exclusion of the 'Group of Eight' (Go8) universities results in a more even distribution of performance. However, in 2003 this group took the lion's share of research inputs but produced a smaller share of outputs. Our findings are relevant to current funding policy discussion.     

Forward markets and the multiproduct,multifactor firm under price uncertainty

In this paper a competitive firm producing multiple outputs with multiple inputs is examined. All input and output prices are uncertain, and forward markets exist for all prices. The firm's optimal production and forward market strategies are analyzed.     

Multi-equation modelling of desirable and undesirable outputs satisfying the materials balance

The key feature when modelling joint production of intended outputs and unintended residuals is that the latter stem from the use of material inputs. A multi-equation model building on the factorially determined multi-output model of classical production theory satisfies the materials balance that tells us that the mass contained in inputs cannot disappear, but must turn up in the desirable outputs or end up as residuals. In this model, potentially complex technical relationships are simplified to express each of the intended outputs and the residuals as functions of the same set of inputs. Serious problems with the single-equation models most often found in the literature are demonstrated. Abatement activity in the form of end of pipe is added, and an optimal planning solution is derived using the concept of an environmental damage function for the impact of discharge of residuals into the natural environment. It is shown that the traditional environmental policy instruments, like direct regulation restricting the amount of undesirable residuals discharged to the environment, a Pigou tax on pollutants, and cap and trade, all function well. Extending the multi-equation model to allow for inefficiency, three efficiency measures are introduced: desirable output efficiency, residuals efficiency, and abatement efficiency. It is conjectured that these measures can be estimated independently using the DEA model.     

Are sports teams multiproduct firms?

The appropriate conception of team outputs is investigated by estimating a two-output factor demand system for baseball teams, relative to which single-output models are rejected. This finding is robust to alternative approaches to testing and model choice. The factor demands are those of the symmetric generalized McFadden cost function, which has several advantages in this context. The team factor inputs are the skill characteristics of players, the prices of which are obtained hedonically. In addition to investigating one- versus two-output models, the estimation results are used to obtain demand and substitution elasticities, factor input elasticities with respect to output, cost elasticities, and measures of economies of scale and scope. Although the results support a multiproduct conception of team production, output separability is not rejected, suggesting that team outputs may sometimes be adequately treated as a production aggregate.     

Quality variations and the choice between foreign and indigenous goods or technology

In this paper, different production techniques are distinguished by both their resource requirements and the quality of their outputs. The optimal choice of production methods depends upon demand conditions, as well as the economy's capital-labor endowment and the technical characteristics of the alternatives. When product quality improvement is possible through the adoption of a foreign, advanced, capital-intensive technique, at most two techniques should be employed and the more closely matched are the capital-labor requirement of the advanced method and the aggregate capital-labor ratio, the greater the extent of adoption. The presence of a competing quality-improving activity using the indigenous technology reduces the range of aggregate capital-labor endowments for which the advanced technique should be employed. We consider quality inspection of units which reduces the amount of tradable output produced by given inputs as its market value increases. Economies of scale, in that the per unit cost of a given quality improvement falls with increasing sectoral output, are included.     

DEA efficiency profiles of U.S. banks operating internationally

Data envelopment analysis (DEA) was used to analyze the 1987 and 1992 input/output efficiency of U.S. banks operating internationally. In 1987, banks belatedly began to acknowledge with huge writeoffs the crisis in lending to less-developed countries (LDCs). Some 20% of the banks were identified as inefficient in each year, and approximately 50-60% of the total inputs/outputs of inefficient banks were excessive/deficient, with inputs proportionately more so than outputs. In 1987, the herd instinct that had led to the LDC loan crisis caused DEA's empirical “best practice” production frontier to identify as efficient banks that were financial “bad practice” banks. However, by 1992, normalcy had returned and DEA best practice banks were also financial good practice banks. Overall, it was found that management should focus on overall efficiency, but with particular attention to inputs, especially cash and real capital, and to foreign loans among the outputs.     

An analysis of the efficient production frontier in the fishery: implications for enhanced fisheries management

The transformation relationship between factor inputs and outputs - the efficient production frontier (EPF)- contains important information for fisheries managers. A directional technology distance function model of the harvesting technology is used to measure changes in the EPF over time. Frontier shifts are summarized with input- and output-based frontier indicators that are interpreted as measures of bioeconomic productivity change. The model is applied to the Mid-Atlantic surf clam and ocean quahog fishery.     

Input-output separability in production models and its structural consequences

Separability of inputs and outputs in a multioutput technology is analyzed in this paper.