Sources of Inefficiency in Healthcare and Education

2016 ◽  
Vol 106 (5) ◽  
pp. 383-387 ◽  
Author(s):  
Amitabh Chandra ◽  
Douglas Staiger
Keyword(s):  
Production Function ◽  
Comparative Advantage ◽  
Supply Side ◽  
Roy Model

Healthcare and education exhibit wide variation in spending that is loosely associated with outcomes. We study supply-side explanations for such variation in in healthcare, and extend this discussion to how it might apply to education. In both sectors, variation in risk-adjusted rates could arise from some providers or educators doing too much (overuse) or others are using too little (underuse). Alternatively, the production function varies across providers and educators, so that hospitals and educators with higher returns to treatment deliver more because of comparative advantage. We discuss how a prototypical Roy model can separate these explanations.

scholarly journals The Allocation of Talent and U.S. Economic Growth

Econometrica ◽  
2019 ◽  
Vol 87 (5) ◽  
pp. 1439-1474 ◽  
Author(s):  
Chang-Tai Hsieh ◽  
Erik Hurst ◽  
Charles I. Jones ◽  
Peter J. Klenow
Keyword(s):  
Economic Growth ◽  
Black Men ◽  
Comparative Advantage ◽  
White Men ◽  
Aggregate Productivity ◽  
Occupational Distribution ◽  
Highly Skilled ◽  
Roy Model ◽  
Market Output ◽  
The U.S

In 1960, 94 percent of doctors and lawyers were white men. By 2010, the fraction was just 62 percent. Similar changes in other highly‐skilled occupations have occurred throughout the U.S. economy during the last 50 years. Given that the innate talent for these professions is unlikely to have changed differently across groups, the change in the occupational distribution since 1960 suggests that a substantial pool of innately talented women and black men in 1960 were not pursuing their comparative advantage. We examine the effect on aggregate productivity of the convergence in the occupational distribution between 1960 and 2010 through the prism of a Roy model. Across our various specifications, between 20% and 40% of growth in aggregate market output per person can be explained by the improved allocation of talent.

INDETERMINACY IN A ONE-SECTOR MODEL REVISITED: DEMAND VERSUS SUPPLY-SIDE INDETERMINACY

2009 ◽  
Vol 54 (02) ◽  
pp. 183-196
Author(s):  
NICHOLAS C. S. SIM
Keyword(s):  
Economic Theory ◽  
Labor Supply ◽  
Production Function ◽  
Supply Side ◽  
Demand Side ◽  
Demand And Supply ◽  
Sector Model ◽  
The One ◽  
Versus Supply

This paper explains how indeterminacy in a one-sector model may arise due to externalities in the disutility of labor supply, which is termed as demand-side indeterminacy. This contrasts supply-side indeterminacy that is driven by externalities in the production function as exemplified by Benhabib and Farmer (Journal of Economic Theory, 1994). For the one-sector models considered, I find that indeterminacy arises more easily from the demand than from the supply side. In addition, demand and supply-side indeterminacy generate different cyclical patterns of wages, a feature that is useful for identifying episodes of self-fulfilling prophecies within the two types of indeterminacy.

Price Distortions, Exports, and Economic Growth: Evidence from the Non-Oil Sectors of Nigeria

2013 ◽  
Vol 3 (1) ◽  
pp. 1-15
Author(s):  
Benedict N Akanegbu
Keyword(s):  
Economic Growth ◽  
Production Function ◽  
Aggregate Demand ◽  
Negative Influence ◽  
Supply Side ◽  
Demand Side ◽  
Model Based ◽  
Oil Exports ◽  
Price Distortions

This study examines the effects of price distortions on output in the non-oil sectors of the Nigerian economy. Specifically, the study tests the hypothesis: that price distortions are inversely related to non-oil output on the supply side; and also inversely related to the aggregate demand component such as non-oil exports on the demand side. The study adopts a model based on a modified neoclassical production function where non-oil exports are taken as production input. The analysis confirms the view that price distortions have significant negative influence on the non-oil sectors of the Nigerian economy.

The Influence of Factor Price Distortions on Economic Structure – Based on Time-Varying Elasticity Production Function Model

2020 ◽  
Vol 24 (4) ◽  
pp. 502-508
Author(s):  
Shangfeng Zhang ◽  
◽  
Qi Fang ◽  
Huiru Ren ◽  
Chun Zhu ◽  
...  
Keyword(s):  
Production Function ◽  
Industrial Structure ◽  
Economic Structure ◽  
Factor Price ◽  
Supply Side ◽  
Time Varying ◽  
Function Model ◽  
Impact Coefficient ◽  
The Impact ◽  
Price Distortions

Based on the time-varying elasticity production function model, we calculate factor price distortions, and study their influence on the rationalization and optimization of industrial structure. We find that the impact coefficient of capital, and labor factor price distortions on the rationalization of industrial structure are −1.2087 and −0.3147 respectively. Additionally, the impact coefficients on the optimization of industrial structure are −0.2333 and −0.0718 respectively. These results demonstrate that capital and labor factor price distortions are significantly negative for the rationalization and optimization of industrial structure. Therefore, it is imperative to reduce factor price distortions, and support industrial structure upgrades to promote supply-side structural reform.

Determinants of Comparative Advantage in GMO Intensive Industries

2017 ◽  
Vol 17 (3) ◽  
pp. 427-449 ◽  
Author(s):  
PAMELA J. SMITH ◽  
BOLORMAA JAMIYANSUREN ◽  
AKINORI KITSUKI ◽  
JOOYOUNG YANG ◽  
JAESEOK LEE
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Genetically Modified Organisms ◽  
Primary Source ◽  
Supply Side ◽  
Net Exports ◽  
Gmo Crops ◽  
Before And After ◽  
Cross Country ◽  
Positive Effect

AbstractThis paper examines the supply-side determinants of international trade in crops that are intensive in genetically modified organisms (GMOs). The theoretical framework is a variant of the Heckscher–Ohlin model, which we estimate using cross-country data for 1995 and 2010 to examine soybeans, maize, and cotton trade. The data include measures of country land endowments, which we disaggregate into GMO and non-GMO components, as well as recently released measures of GMO regulations. Findings show land endowments are a primary source of comparative advantage in GMO intensive industries before and after the advent of GMOs. Further, an increase in a country's allocation of land to GMO crops has a positive effect on her net exports in GMO intensive industries. This positive effect occurs both across countries and time. Finally, a country's GMO regulations have a negligible effect as a supply-side determinant of comparative advantage. However, a country's decision about whether to adopt GMO technologies does matter to trade. These findings are robust with respect to a variety of considerations.

scholarly journals Explaining long-term growth in Namibia

2011 ◽  
Vol 12 (1) ◽  
pp. 48-62 ◽  
Author(s):  
Joel Hinaunye Eita ◽  
Charlotte Du Toit
Keyword(s):  
Economic Growth ◽  
Production Function ◽  
Capital Investment ◽  
Supply Side ◽  
Labour Demand ◽  
Growth Path ◽  
Neoclassical Growth Model ◽  
Final Output ◽  
Neoclassical Growth

Supply-side economics stresses the importance of analysing and modelling the long-term properties of an economy’s production structures in order to investigate each factor of production’s impact on final output. This helps to determine how much should be produced, how much is available for consumption and, eventually, how an economy can improve its long-term economic growth path. This study applied the neoclassical growth model to Namibia’s growth over the period from 1971 to 2005 in order to identify and develop the main supply-side components of long-term economic growth in the country. Along with a production function, behavioural equations were estimated for the factors of production labour demand and capital investment, as well as for the links between prices and wages.

Reassessing the Export Competitiveness of Vietnam

2019 ◽  
Vol 5 (5) ◽  
pp. 539-549
Keyword(s):  
Human Capital ◽  
Comparative Advantage ◽  
Value Added ◽  
Industry Trade ◽  
Export Competitiveness

In this paper, primarily the export specialisation pattern of Vietnam has been examined from the perspective of domestic value added exports. In addition, an effort has been made to identify presence of exaggeration in gross exports measures of industries level competitiveness. Empirical findings suggest that the export specialisation of Vietnam has reversed, and there is presence of exaggeration in the estimates of comparative advantage of ‘human capital and technology intensive’ industries that has also caused in ballooning up their shares in gross exports. Such pattern has arisen because intra-industry trade has become increasingly significant in Vietnam. Received 11th March 2019; Revised 17th October 2019, Accepted 20th October 2019

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