Production, multi-sectoral growth and planning : essays in by Finn R Førsund; Michael Hoel; Svein Longva; Leif Johansen

By Finn R Førsund; Michael Hoel; Svein Longva; Leif Johansen

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The productivity changes and the nature of technical progress are easily grasped from following the same isoquant levels in Figure 5. 9600 Fig. 5. Short-run production functions for Danish 1960-1970-1980. Isoquant distance 500 ktonnes The 12000 L Cement Industry Intercountry comparison 29 quantitative measures are shown in Table 5. The measures are, of course, the same for all output levels. The progress for the entire twenty-year period actually took place between 1965 and 1970, the first five-year period actually showing regress, while the other remained at more or less a standstill.

The This means This p h e n o m ­ development of technical p r o g r e s s . Swedish 1980 p r i c e s . 24 Table 4 . b . S a l t e r - m e a s u r e , D, of f a c t o r - s a v i n g b i a s . i n d u s t r y 1960-1980. 1980 p r i c e s . 90 28 Forsund et al. Sweden is also characterised by labour-saving technical progress: it almost came to a halt during the first half of the 1970s, but gained mo­ mentum again during the latter half. Denmark Since the data are on a plant level, it has not been possible to distin­ guish between the input coefficients of the various kilns.

The distribution approach We assume that the production s t r u c t u r e of an industry under consid­ eration is of a putty-clay nature with only one variable input, labour. Then each production unit in that industry will be characterised in the short run by a fixed amount of capacity output, x, and a fixed labour o p r o d u c t i v i t y , ß. The labour productivity has a maximum value, ß : no production unit can produce more efficiently. A useful way of summarising 45 Capacity distribution the conglomeration for production units in the industry is to use the concept of the capacity distribution.

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