Academic literature on the topic 'Short-run production functions'

Short-run and long-run derived irrigation water demand functions are estimated using shadow price data obtained from a profit maximization mathematical programming model. Crop and soil-type specific production functions are expressed in terms of applied irrigation water. Demand functions for two South Central Idaho counties are estimated using linear, semi-log, double-log, and Box-Cox transformation forms. Price elasticities, at the mean shadow prices, range from 0.8 to 1.2, 1.49 to 1.84, and 2.9 to 4.9, for short run, long run with deficit irrigation, and long run with no deficit irrigation, respectively.

In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, these curves are used by the entities to find the optimal point of production, where they make the highest profits. There exist several different types of cost curves, while each of them is relevant to a different area of economics. In the article, authors are focused on solution of cost-functions modelling, both short-run cost function and long-run cost function under circumstances of risk and uncertainty. Considerations about factors of risk and uncertainty are based on an irrefutable fact that companies are not separate entities taken out of surrounding environment; entities operate in global world where many random factors are influencing the processes in companies while the number of these random factors is ad infinitum. The fact that estimation of cost functions' parameters are realized from past data is the basis of the considerations about planning of future scope of production based on these functions. Especially for the long-run cost functions it is impossible to leave out all the random influences. Their quantification is derived from aposteriori probabilistic approach according to Bayesian Theorem.

There exists a highly interrelated relationship between energy, the environment and growth where the efficient management of this nexus is not only a must for sustainable development and human wellbeing but is also a basis for formulating sound economic policies harnessed with energy and environmental policies. Thus, this paper aims at investigating the causal relationships among renewable energy production, total energy consumption and economic growth for Turkey both in the long and short runs. The analyses are conducted by using the Johansen–Juselius co-integration test, the vector error correction model, Granger causality, impulse-response functions and variance decomposition for the period 1980–2016. Our findings obtained for the causal relationship between renewable energy and economic growth points to a bidirectional relationship both in the short and in long runs that promote feedback hypothesis, and it also reports a causal relationship running from energy consumption to economic growth both in the short and long runs, supporting the growth hypothesis. However, no consistent result could be obtained for the short run relationship from economic growth to energy consumption. These results indicate that increased renewable energy production and decreased energy consumption are vital for Turkey’s sustainable development.

This research is employed to examine the environmental issues embedded in Belt & Road Initiative (BRI), to be more specific: testify which of these hypotheses: Pollution Havens Hypothesis, Pollution Halo Hypothesis, Environmental Kuznets Curve is in accordance with the current development condition of BRI counties; whether there exists a bidirectional relationship among Ecological Footprint, Gross Domestic Production, Foreign Direct Investment (FDI) in Belt & Road Initiative countries. In this paper, Panel Vector Autoregression is utilized to analyze a dataset of 44-member countries in this initiative, ranges from 1990 to 2016, to empirically testify the environmental evaluation of this project. Results are analyzed on both long-run and short-run cases through Orthogonalized Impulse-Response Functions (IRF). This research displays a great heterogeneity among different target variables, FDI as a main variable of interest does not expose a bidirectional relationship with Ecological Footprint, only Ecological Footprint demonstrates robust influence on FDI. In addition, Pollution Havens Hypothesis is certified to be true for FDI and GDP among Belt & Road Initiative member countries.

Purpose An aggregate production function has been used in macroeconomic analysis for a long time, even though it seems that it is conceptually confusing and problematic. The purpose of this paper is to argue that the measurement problem related to the heterogenous capital input that exists in macroeconomics is also relevant to microeconomic market situations. Design/methodology/approach The author constructed a microeconomic market model to address both the problems of the measurement of the physical capital and of substitutability between labor and capital in the short run using two types of technologies: labor neutral and labor reducing. The author proposed that labor and physical capital inputs are complementary in the short run and can become substitutes only in the long run when the technology advances. Findings The author found that even if the technology improves at a fast rate over time, there are then diminishing returns of profits to technology and an upper limit to profits. Moreover, the author showed that under the labor-reducing technology, labor class earns more initially as technology improves, but their incomes start declining after some threshold level of passage of time. Originality/value The author cautioned the applied researcher that the estimated labor and capital coefficients of generalized Cobb–Douglas and constant elasticity of substitution of types of production functions could not be interpreted as partial elasticities of labor and capital if in reality the data come from fixed-proportions types of processes.

This research examines the hypothesis of money neutrality in Zimbabwe. After studying the relevant literature on the effects of changes in money supply on real variables, it outlines the research design for a macro-level study on the impact of changes in money supply on real variables. The hypothesis is that there is a positive relationship between money supply and real variables (GDP). The researcher used real GDP as the dependent variable whilst money supply (M3), interest rate and government expenditure were used as explanatory variables. A VAR model has been applied using the country’s macroeconomic data from 1990 to 2017 which was obtained from ZIMSTATS and World Bank Open Data website. Impulse response functions and variance decomposition were used to analyse the impact of the explanatory variables on real GDP. The results suggest that money positively affects real GDP in the short run but in the long it is insignificant in influencing real output. This means that in Zimbabwe, money is non-neutral in the long run, but it is neutral in the long run. Government expenditure has an insignificant influence on GDP both in the short and long run whilst interest rate has a positive effect on GDP in the long run. The recommendations which were given are that the government; should use expansionary monetary policy to increase real GDP, demonetise the bond note as well as the RTGS and adopting the Rand, curbing inflation through increasing production and ensuring transparency in the manner in which loans are given.

Financing is one of the main functions of Islamic banking. In its operational activities, Islamic banking channel most of its assets into financing. However, the financing trend in this sector always fluctuates from year to year and tends to decline. This study aims to analyze the factors that influence the financing of the business services sector in Islamic banking in Indonesia. This study uses time-series data which is the monthly data of the aggregate financial statements of Sharia Commercial Banks and Sharia Business Units in Indonesia. The analysis method used in this study is Autoregressive Distributed Lag (ARDL). The results showed that the variables that influence the financing of the business services sector in the short term are third party funds (DPK), equivalent rate of financing (ERP) and Industrial Production Index (IPI). Whereas in the long run, the variables that influence the financing of the business services sector are third party funds (DPK), return on assets (ROA), non-performance financing (NPF), Industrial Production Index (IPI). While the variable interest rates and exchange rates both in the short and long term do not affect the financing of the business services sector.

This working paper strives to measure analyze and the productivity of capital in the industrial sector in the case of the State of Sistan and Baloochestan over the period 1982-2009. Three production functions (Debertin, Cobb-Douglas and Transcendental logarithm (Translog)) are estimated by relevant variables such as labor, capital and GDP. Akaike, Schwarz information criteria and LR test indicate that the Cobb-Douglas model should be preferred. In order to avoid a spurious regressing Johansen test detects a cointegration. According to this detection the cointegration term (-0.46) indicates that the deviation from long-run equilibrium is rectified gradually through a series of partial short term adjustments after or so two years.The results of this function reveal that there's been a diminishing trend in productivity of capital since 1982.So it demonstrates the lack of attention to capital productivity. Thus we can conclude that Sistan suffers from the absence of comprehensive strategy and segregation between trade and production policies.

AbstractThis chapter was aimed at evaluating the responses of livestock to fluctuations in climate and the debilitating effect of livestock production on the environment. Survey of livestock stakeholders (farmers, researchers, marketers, and traders) was carried out in Sahel, Sudan, Northern Guinea Savannah, Southern Guinea Savannah, and Derived Savannah zones of Nigeria. In total, 362 respondents were interviewed between April and June 2020. The distribution of the respondents was 22 in Sahel, 57 in Sudan, 61 in Northern Guinea Savannah, 80 in Southern Guinea Savannah, and 106 in Derived Savannah. The respondents were purposively interviewed based on their engagement in livestock production, research or trading activities. Thirty-eight years’ climate data from 1982 to 2019 were obtained from Nigerian Metrological Agency, Abuja. Ilela, Kiyawa, and Sabon Gari were chosen to represent Sahel, Sudan, and Northern Guinea Savannah zone of Nigeria, respectively. The data contained precipitation, relative humidity, and minimum and maximum temperature. The temperature humidity index (THI) was calculated using the formula: THI = 0.8*T + RH*(T-14.4) + 46.4, where T = ambient or dry-bulb temperature in °C and RH=relative humidity expressed as a proportion. Three Machine Learning model were built to predict the monthly minimum temperature, maximum temperature, and relative humidity respectively based on information from the previous 11 months. The methodology adopted is to treat each prediction task as a supervised learning problem. This involves transforming the time series data into a feature-target dataset using autoregressive (AR) technique. The major component of the activities of livestock that was known to cause injury to the environment as depicted in this chapter was the production of greenhouse gases. From the respondents in this chapter, some adaptive measures were stated as having controlling and mitigating effect at reducing the effect of activities of livestock on the climate and the environment. The environment and climate on the other side of the dual pathway is also known to induce stress on livestock. The concept of crop-livestock integration system is advocated in this chapter as beneficial to livestock and environment in the short and long run. Based on the predictive model developed for temperature and relative humidity in a sample location (Ilela) using Machine Learning in this chapter, there is need for development of a web or standalone application that will be useable by Nigerian farmers, meteorological agencies, and extension organizations as climate fluctuation early warning system. Development of this predictive model needs to be expanded and made functional.

This paper examines the effects of Iranian non-oil exports on output during the years 1980-2007. We use an augmented neoclassical production function type and apply VECM methodology to estimate the short and long-run effects. The results show: negative effects of non-oil export on non-Export output, while capital stock and labor force have positive effects on non-Export GDP.

Three-dimensional additive manufacturing or solid freeform fabrication (SFF) techniques, originated in the rapid fabrication of non-functional physical prototypes in polymers (Rapid Prototyping), have matured to the manufacture of functional prototypes, short-run production products, and now even advanced engineering designs. Laser-based material deposition or laser cladding has been used as a SFF technique, in which a laser beam is used as a precise high-energy thermal source to melt preplaced or pneumatically delivered metal powders and make solidified deposits on a substrate. By using laser cladding techniques, three-dimensional fully dense components can be built line-by-line and layer-by-layer directly from a CAD model with tailored material properties. Laser cladding is essentially a fusion and solidification (thermal) process, which involves complicated interactions between the laser beam, metal powders, the base material (substrate), and processing gases. Maintaining a stable and uniform melt pool during laser cladding is critical to produce dimensional accuracy and material integrity. An effective control of energy (laser power) spatial and temporal distributions in either an open-loop or closed-loop laser cladding process is essential to achieve the high quality results. This paper reviews, from a laser-material interaction point of view, various laser cladding based SFF processes, and particularly the direct metal deposition technique.

Early Intervention and Local Content Optimization Esso Exploration and Production Guyana Limited ("ExxonMobil"), an affiliate of Exxon Mobil Corporation, and its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, discovered oil in the Stabroek block offshore Guyana during the first half of 2015. The success of safely drilling their first well (Liza-1), followed a history of 40 dry holes in the Guiana Basin prior to ExxonMobil beginning ultra-deepwater oil and gas exploration in 2008 (Varga et al. 2021). Guyana, with a small population of 750,000, was primarily economically focused on agriculture, manufacturing, and the mining of bauxite and gold. ExxonMobil identified the need for an early, focused, coordinated, and long-lasting approach to local content planning to provide tangible results for Guyana. Developing local businesses to actively participate in the industry and enter the supply chain while raising awareness of how the oil and gas industry operates was paramount, as was managing expectations of the Guyanese government and populace about local content. ExxonMobil recognized that the established mining sector in Guyana had the potential to provide a base of local suppliers able to transition into the emerging oil and gas sector. It subsequently undertook a number of assessments and studies on the local economy to further understand the local context. The finding of these assessments highlighted that most Guyanese companies were operating in the small local economy or working within the Caribbean region, limiting their exposure to international standards and providing little impetus to become globally competitive. Despite having technical competencies that could be utilized in the oil and gas industry, shortfalls were apparent in the areas of auditable systems, business processes, quality assurance, and safety. Closing the gaps would take time and investment, and a shift in culture in some parts. An internal assessment of ExxonMobil's supplier development programs was conducted, and a Guyana supplier development program was developed by drawing from best practices around the globe. ExxonMobil, with the support of its Stabroek Block co-venturers, took a proactive decision and devised a plan to engage an independent third party to run a "fit for purpose" enterprise development centre (EDC) to support the technical development in country through local content prior to final investment decision (FID). In order to be equipped to provide early roll out of local content development, and 6 months before FID for Liza 1, ExxonMobil released a Request for Proposal (RFP). Bidders were invited to submit proposals on how the EDC would function "fit for purpose" and compliment rather than compete with current Guyanese activities and vendors. The successful bidder, DAI Global LLC (DAI), had a proven track record of international socioeconomic project successes and was selected to form a unique and collaborative, strategic relationship with ExxonMobil. Although DAI had previous experience in nascent markets, the challenge in Guyana was to expand the Guyanese supplier base into a new sector. The global experience of both ExxonMobil and DAI worked in tandem to produce a flexible management structure with the capability to adapt to the ensuing exploration successes and expanding industry needs. Both short and long term programs would be utilized to engage businesses for the changing needs of businesses during varying developmental stages. Additionally, ExxonMobil's foresight to incorporate local content requirements and contractual use of the centre into prime contractor contracts provided support for the long-term viability of the EDC. The EDC established in Guyana was named The Centre for Local Business Development (Centre). The Centre design provides a supportive environment where seeking and acquiring information about the oil and gas sector is a comfortable experience. Inclusive of classrooms, meeting spaces, offices, and networking areas, the Centre sponsors engaging programs and provides mentorship for companies entering the industy. Drawing upon studies and data to drive the content and focus of its programs, the Centre addresses relevant needs in the business community. For example, a DAI baseline study on the international competitiveness of local businesses showed that two-thirds of Guyanese businesses were not internationally competitive and needed support with basic business systems (e.g. financial management, supply chain management and human resources). Other stakeholder focus group studies conducted by ExxonMobil determined that there was a lack of foundational knowledge about the oil and gas sector. Having access to this research pre-FID allowed for a head start on planning and enabled the implementation of a work program just 3 months after the Centre's opening.

The COVID-19 pandemic has forced 1.7 billion children out of school temporarily. While many education systems are attempting varying degrees of remote learning, it is widely accepted that the closures will produce substantial losses in learning (World Bank, 2020; Kuhfeld et al., 2020). However, the real concern is not just that a few months of learning will be lost in the short run, but that these losses will accumulate into large and permanent learning losses as many children fall behind during school closures and never catch up. This note uses a calibrated model with a “pedagogical production function” (Kaffenberger and Pritchett, 2020) to estimate the potential long-term losses to children’s learning from the temporary shock of school closures. The model shows that without mitigation, children could lose more than a year’s worth of learning even from a three-month school closure as the short-term losses continue to compound after children return to school. Turning to mitigation strategies, the note examines the long-term effects of two strategies, finding that with some mitigation efforts education systems could come back from the crisis stronger than before.