Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor... more Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor demand that allows for considerable flexibility in both the choice of the functional form of the technology and the expectation formation process. This paper applies this methodology to estimate the production structure, and the demand for labor, materials, capital and R&D by the U.S. Bell System. The paper provides estimates for short-, intermediateand long-run price and output elasticities of the inputs, as well as estimates on the rate of return on capital and R&D. The paper also discusses the issue of the measurement of technical change if the firm Is in temporary rather than long-run equilibrium and the technology is not assumed to be linear homogeneous The paper provides estimates for input and output based technical change as well as for returns to scale. Furthermore, the paper gives a decomposition of the traditional measure of total factor productivity growth.
The research reported here is part of the NBER's research program in Productivity. Any opinions e... more The research reported here is part of the NBER's research program in Productivity. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.
The paper analyzes the production structure and the demand for inputs in three major industrializ... more The paper analyzes the production structure and the demand for inputs in three major industrialized countries, the U.S., Japan and Germany. A dynamic factor demand model with two variable inputs (labor and energy) and two quasi-fixed inputs (capital and R&D) is derived directly from an intertemporal cost-minimization problem formulated in discrete time. Adjustment costs are explicitly specified. The model is estimated for the manufacturing sector of the three countries using annual data from 1965 to 1977. Particular attention is given to the role of R&D. For all countries the rate of return on R&D is found to be higher than that on capital. Their respective magnitudes are similar across countries. We find considerable differences in factor demand schedules; we also find tha1 for all countries the speed of adjustment for capital is higher than that of R&D. Adjustment costs are of importance in the demand equations for capital and R&D, but play a minor role in the decomposition of total factor productivity growth.
The research reported here is part of the NBER's research program in Productivity. Any Opinions e... more The research reported here is part of the NBER's research program in Productivity. Any Opinions expressed are those of the authors and not those of the National Bureau of Economic Re5earch.
... Author info | Abstract | Publisher info | Download info | Related research | Statistics. Auth... more ... Author info | Abstract | Publisher info | Download info | Related research | Statistics. Author Info. Nadiri, M. Ishaq Prucha, Ingmar R. Abstract. ... Please ask Anne Stubing to update the entry or send us the correct address.. Related research. Keywords: Statistics. ...
The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparin... more The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparing this manuscript and two referees for very constructive and helpful comments. We also acknowledge support from the C.
The paper analyzes the production structure and the demand for inputs in three major industrializ... more The paper analyzes the production structure and the demand for inputs in three major industrialized countries, the U.S., Japan and Germany. A dynamic factor demand model with two variable inputs (labor and energy) and two quasi-fixed inputs (capital and R&D) is derived directly from an intertemporal cost-minimization problem formulated in discrete time. Adjustment costs are explicitly specified. The model is estimated for the manufacturing sector of the three countries using annual data from 1965 to 1977. Particular attention is given to the role of R&D. For all countries the rate of return on R&D is found to be higher than that on capital. Their respective magnitudes are similar across countries. We find considerable differences in factor demand schedules; we also find tha1 for all countries the speed of adjustment for capital is higher than that of R&D. Adjustment costs are of importance in the demand equations for capital and R&D, but play a minor role in the decomposition of total factor productivity growth.
In this paper, we examine the sources of the productivity growth in the U.S. computer industry fr... more In this paper, we examine the sources of the productivity growth in the U.S. computer industry from 1978 to 1999. We estimate a joint production model of output quantity and quality that distinguishes two types of technological changes: process and product innovations. Based on the estimation results, we decompose total factor productivity (TFP) growth rate into the contributions of process and product innovations and scale economies. The results show that product innovation associated with better quality accounts for about 30 percent of the TFP growth in the computer industry. Furthermore, we find that the TFP acceleration in the computer industry in the late 1990s is mainly derived from a rapid increase in product innovation.
Advanced studies in theoretical and applied econometrics, 1989
R&D vestment is an o.tcome of a corporate olan and is iniuenced o the exstg-echnoccy, cy prces, b... more R&D vestment is an o.tcome of a corporate olan and is iniuenced o the exstg-echnoccy, cy prces, by proauct demand cHaracteristics, and 0/ ne legacy of past capital stock decisions. in this paper we focus on tn aecrminants anc interaction of iaoor, pnysical captal and R&D. a'toular, we ivestigate tnee major ssjes. °he first relates o the nature of tne factor suTs'-ttion possicI:'es cetween the three npu-s in response to changes ioot p'ces and estdnate the own and cross once elasticities of te factors of productn. The second problem pertans to the magnitude o wLcn output expansion 'or what may be considered the same thing, product jemand growtr1 nc'eases labor, physical, and R&D capital. Fnaiy, we aadress the extent to wh'ch adjustment costs affect 5actor demands, and measure tne magnitude of tnese costs for physi-OSI and P&D capital.
Micro-macro linkage, public goods, & congestion,net-158 work captial, spatial equilibrium, econom... more Micro-macro linkage, public goods, & congestion,net-158 work captial, spatial equilibrium, economic perfor-16. PRICE CODE mance, public capital, cost & profit function 17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT OF REPORT OF THIS PAGE
Publisher Summary Developing nations, which depend on exports of non-oil commodities for foreign ... more Publisher Summary Developing nations, which depend on exports of non-oil commodities for foreign exchange, have argued that the indexation of commodity prices to some price measure in developed countries would benefit rich and poor nations alike. This proposition has been dissected theoretically but no consensus of opinion has been established. This chapter discusses the impacts of commodity-price indexation on the world economy using a specially designed global econometric simulation model. The chapter presents an overview of some issues in the debate over commodity-price indexation. It describes the regional econometric model for price-indexation studies (REMPIS) model. The chapter also presents simulation results and some conclusions are drawn from these simulations. The most important element of the indexation scenario is the selection of the indexation rule. Any “real-world” application of commodity-price indexation would involve political compromise as well as economic benefit analysis.
Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor... more Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor demand that allows for considerable flexibility in both the choice of the functional form of the technology and the expectation formation process. This paper applies this methodology to estimate the production structure, and the demand for labor, materials, capital and R&D by the U.S. Bell System. The paper provides estimates for short-, intermediateand long-run price and output elasticities of the inputs, as well as estimates on the rate of return on capital and R&D. The paper also discusses the issue of the measurement of technical change if the firm Is in temporary rather than long-run equilibrium and the technology is not assumed to be linear homogeneous The paper provides estimates for input and output based technical change as well as for returns to scale. Furthermore, the paper gives a decomposition of the traditional measure of total factor productivity growth.
The research reported here is part of the NBER's research program in Productivity. Any opinions e... more The research reported here is part of the NBER's research program in Productivity. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.
The paper analyzes the production structure and the demand for inputs in three major industrializ... more The paper analyzes the production structure and the demand for inputs in three major industrialized countries, the U.S., Japan and Germany. A dynamic factor demand model with two variable inputs (labor and energy) and two quasi-fixed inputs (capital and R&D) is derived directly from an intertemporal cost-minimization problem formulated in discrete time. Adjustment costs are explicitly specified. The model is estimated for the manufacturing sector of the three countries using annual data from 1965 to 1977. Particular attention is given to the role of R&D. For all countries the rate of return on R&D is found to be higher than that on capital. Their respective magnitudes are similar across countries. We find considerable differences in factor demand schedules; we also find tha1 for all countries the speed of adjustment for capital is higher than that of R&D. Adjustment costs are of importance in the demand equations for capital and R&D, but play a minor role in the decomposition of total factor productivity growth.
The research reported here is part of the NBER's research program in Productivity. Any Opinions e... more The research reported here is part of the NBER's research program in Productivity. Any Opinions expressed are those of the authors and not those of the National Bureau of Economic Re5earch.
... Author info | Abstract | Publisher info | Download info | Related research | Statistics. Auth... more ... Author info | Abstract | Publisher info | Download info | Related research | Statistics. Author Info. Nadiri, M. Ishaq Prucha, Ingmar R. Abstract. ... Please ask Anne Stubing to update the entry or send us the correct address.. Related research. Keywords: Statistics. ...
The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparin... more The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparing this manuscript and two referees for very constructive and helpful comments. We also acknowledge support from the C.
The paper analyzes the production structure and the demand for inputs in three major industrializ... more The paper analyzes the production structure and the demand for inputs in three major industrialized countries, the U.S., Japan and Germany. A dynamic factor demand model with two variable inputs (labor and energy) and two quasi-fixed inputs (capital and R&D) is derived directly from an intertemporal cost-minimization problem formulated in discrete time. Adjustment costs are explicitly specified. The model is estimated for the manufacturing sector of the three countries using annual data from 1965 to 1977. Particular attention is given to the role of R&D. For all countries the rate of return on R&D is found to be higher than that on capital. Their respective magnitudes are similar across countries. We find considerable differences in factor demand schedules; we also find tha1 for all countries the speed of adjustment for capital is higher than that of R&D. Adjustment costs are of importance in the demand equations for capital and R&D, but play a minor role in the decomposition of total factor productivity growth.
In this paper, we examine the sources of the productivity growth in the U.S. computer industry fr... more In this paper, we examine the sources of the productivity growth in the U.S. computer industry from 1978 to 1999. We estimate a joint production model of output quantity and quality that distinguishes two types of technological changes: process and product innovations. Based on the estimation results, we decompose total factor productivity (TFP) growth rate into the contributions of process and product innovations and scale economies. The results show that product innovation associated with better quality accounts for about 30 percent of the TFP growth in the computer industry. Furthermore, we find that the TFP acceleration in the computer industry in the late 1990s is mainly derived from a rapid increase in product innovation.
Advanced studies in theoretical and applied econometrics, 1989
R&D vestment is an o.tcome of a corporate olan and is iniuenced o the exstg-echnoccy, cy prces, b... more R&D vestment is an o.tcome of a corporate olan and is iniuenced o the exstg-echnoccy, cy prces, by proauct demand cHaracteristics, and 0/ ne legacy of past capital stock decisions. in this paper we focus on tn aecrminants anc interaction of iaoor, pnysical captal and R&D. a'toular, we ivestigate tnee major ssjes. °he first relates o the nature of tne factor suTs'-ttion possicI:'es cetween the three npu-s in response to changes ioot p'ces and estdnate the own and cross once elasticities of te factors of productn. The second problem pertans to the magnitude o wLcn output expansion 'or what may be considered the same thing, product jemand growtr1 nc'eases labor, physical, and R&D capital. Fnaiy, we aadress the extent to wh'ch adjustment costs affect 5actor demands, and measure tne magnitude of tnese costs for physi-OSI and P&D capital.
Micro-macro linkage, public goods, & congestion,net-158 work captial, spatial equilibrium, econom... more Micro-macro linkage, public goods, & congestion,net-158 work captial, spatial equilibrium, economic perfor-16. PRICE CODE mance, public capital, cost & profit function 17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT OF REPORT OF THIS PAGE
Publisher Summary Developing nations, which depend on exports of non-oil commodities for foreign ... more Publisher Summary Developing nations, which depend on exports of non-oil commodities for foreign exchange, have argued that the indexation of commodity prices to some price measure in developed countries would benefit rich and poor nations alike. This proposition has been dissected theoretically but no consensus of opinion has been established. This chapter discusses the impacts of commodity-price indexation on the world economy using a specially designed global econometric simulation model. The chapter presents an overview of some issues in the debate over commodity-price indexation. It describes the regional econometric model for price-indexation studies (REMPIS) model. The chapter also presents simulation results and some conclusions are drawn from these simulations. The most important element of the indexation scenario is the selection of the indexation rule. Any “real-world” application of commodity-price indexation would involve political compromise as well as economic benefit analysis.
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