Cobb-Douglas Research Articles

Effect of human capital devolution process on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study investigates how the process of human capital devolution affects the technical efficiency of public health facilities in Nakuru and Baringo Counties in Kenya. Despite the expectation that increased government expenditure would enhance efficiency, the public health sector in Kenya continues to need more efficiency. The study was guided by the Human Capital Theory. The human capital devolution process was measured by academic and professional qualification, training and conferences, research and publications, and expenditure on salaries and allowances. This study drew from the Cobb-Douglas production function theory. Employing a quantitative descriptive research design, the study targeted 3199 employees across 401 level 2-5 public health facilities, with a focused sample of 355 proportionately selected employees. Primary data was gathered using structured questionnaires coded and analysed using STATA/SPSS software. Technical efficiency was assessed using two-stage Data Envelopment Analysis (DEA) and multivariate logistic regression. The regression analysis results revealed a significant relationship between human capital and technical efficiency, with a coefficient of human capital development at 0.331 (T-value= 4.384, p-value= 0.000< 0.05 significant level). This indicates a positive impact of human capital devolution on technical efficiency, where a unit increase in human capital development leads to a 0.331 increase in technical efficiency. The study recommends that financial challenges, the unequal distribution of national resources, and poor funding of devolution services can be solved by transferring all functions earmarked to County Governments as per Schedule IV in the Constitution of Kenya, 2010.

A statistical interpretation of a market demand curve for a commodity obeying the law of demand

In this note we provide a statistical interpretation of the Marshallian market demand curve of a commodity that obeys the law of demand and which has a finite and positive level of satiation. A consequence of our approach is that in the context of two goods, we are able to obtain demand functions which are very similar to those obtained by “budget-constrained Cobb–Douglas utility maximization”, but now as a result of a “budget-constrained linear utility maximization” exercise, although our budget constraint is “slightly different” from the one that would be used for the former optimization problem.

Faktor-Faktor yang Memengaruhi Produksi Manggis (Garcinia Mangostana) Di Desa Puspahiang Kecamatan Puspahiang Kabupaten Tasikmalaya

Mangosteen is one of the prospective horticultural commodities in Indonesia. It is a perennial plant with a lifespan of several decades. On average, mangosteen trees in Indonesia can produce 30-70 kg of fruit per tree in a single harvest per year, which is lower compared to Malaysia, Thailand, and India where yields can reach 200-300 kg of fruit per tree. The primary mangosteen production centers in Indonesia are located in West Java Province, specifically in Tasikmalaya, Subang, and Sukabumi. This research was conducted to identify the factors influencing mangosteen production. The research methodology employed a survey approach, collecting primary data directly from respondents (mangosteen farmers) and secondary data obtained from the Tasikmalaya District Central Statistics Agency. The study was conducted in Puspahiang Village, Puspahiang District, Tasikmalaya Regency, and simple random sampling was used for sample selection. The impact of production factors was analyzed using the Cobb-Douglas production function equation model. To assess the simultaneous effect, an F-test was conducted, and for the partial effects, a t-test was employed. The research findings indicate that variables such as land area, number of trees, organic fertilizers, labor force, and tree age collectively influence mangosteen production. Additionally, when examined individually, land area, number of trees, organic fertilizers, labor force, and tree age each have a significant impact on mangosteen production. The scale of production results suggests that a 1 percent increase in input will lead to a 2.216 percent increase in mangosteen production, indicating an increasing return scale.

Human capital spillovers and plant productivity in ASEAN: Evidence from the plant panel data

This paper examines whether local human capital spillovers can affect plant productivity in three Association of Southeast Asian Nations (ASEAN) countries using panel data from the World Bank enterprise survey between 2009 and 2015. According to the literature, spillovers in the form of human capital are critical for economic growth. The spillovers exist if plants can produce more in the region with the abundant number of skilled workers given their inputs. This study uses the augmented Cobb-Douglas production function to evaluate the influence of the non-production worker proportion outside the plant which serves as a proxy for skilled workers. The findings indicate that plant production is impacted by spillovers of human capital. This study finds that a 1 percentage point increase in the proportion of nonproduction workers within a region will enhance the productivity of plants in all regions by roughly 7.1–8.9 percent. Moreover, productivity rises are found to be higher for low-tech plants. According to the economic significance of these spillover effects, the value-added per plant will rise by US$ 330,000 or US$ 866.75 million for the manufacturing sector as a whole. According to the findings, policymakers should encourage plants to provide workers with additional training and raise the level of human capital through education.

Why is the Cobb-Douglas production function so popular?

It is well known that, in continuous time, the Cobb-Douglas function can be derived from the underlying, data governing, accounting identity under some reasonable assumptions (factor shares are constant, and the weighted growth of the labour input price and the capital input price is constant). In this article these results are generalized in three ways: (1) the accounting identity contains a (pure) profit term; (2) continuous time is replaced by discrete time periods; (3) additional assumptions appear to be superfluous. The article also discusses extensions: from two to multiple inputs, from value added to gross output, and from a single production unit to an ensemble of those units.

Assessment of natural resource endowment and urban-rural integration for sustainable development in Xinjiang, China

Water and land (W-L) resources become even more important in the context of urban-rural integration in China's arid northwest region in order to achieve sustainable development goals (SDGs). Our study used Gini coefficients to examine the relationship between natural resources and economic development in China's Xinjiang Uygur Autonomous Region. Cobb-Douglas (C-D) production functions were used to determine the economic impacts of W-L resources on rural-urban economic development. We also examined the spatiotemporal interaction characteristics of the growth drag effect of W-L resources. As a result of the decline in Gini coefficients between 2000 and 2020, Xinjiang experienced a decrease in water resources, land resources, and urban-rural GDP (gross domestic product). The output elasticities of urban-rural land and water resources were 0.3544 and 0.4790, respectively, whereas the output elasticities of urban-rural land resources were 0.1501 and 0.2185, respectively. As a result, water resources contribute to the growth of urban-rural GDP more than land resources, and W-L resources contribute to the economic development of rural areas more than it does to that of urban areas. Land resources were found to have a drag effect on urban and rural economies, respectively, in 7 and 56 counties, respectively, and water resources were found to have a drag effect on urban and rural economies, respectively, in 67 and 58 counties. In Xinjiang, water resources contributed more to economic growth than land resources. Even though W-L resources still have a drag effect on urban-rural economic growth, we can gain greater driving force by optimizing and improving resource use. However, this requires an optimal allocation and efficient use of water resources.

Economic Efficiency of Banana Production in Uttara Kannada District of Karnataka, India

Aim: Banana cultivation holds significant agricultural importance, contributing substantially to global dietary staples. This study Examines the economic efficiency of banana production in Uttara Kannada district.
 Sampling Design: Employed purposive and multistage sampling, the study focuses on Sirsi and Siddapur taluks, selecting 80 farmers through random sampling.
 Methodology: The research examines resource utilization by employing the Cobb-Douglas production function and evaluate efficiency levels by Data Envelopment Analysis (DEA).
 Results: Allocative efficiency in banana cultivation is apparent through positive MVP/MFC ratios for inputs like suckers (15.89), manure (1.91), fertilizers (7.21), machine labor (1.75), and propping material (6.66), indicating underutilization. Conversely, plant protection chemicals (-22.35) and human labor (-1.20) show negative ratios, signifying overutilization. The ratio of MVP to MFC was differed from unity indicating scope for reallocation of expenditure among various resources. Using Data Envelopment Analysis, individual farm technical and economic efficiency was assessed. Banana, Crop I had a mean technical efficiency of 70.30, while Crop II had 49.40. The results highlight room for improvement, especially in Crop II, emphasizing the need for better resource allocation. Major production constraints include labour scarcity, poor planting material, and pest issues. Marketing hurdles encompass price fluctuations, limited storage, and distant markets.
 Conclusion: The study emphasizes the banana cultivation revealed significant impacts of resource utilization on yield, with suckers, fertilizers, and plant protection chemicals showing substantial effects. Allocative efficiency analysis indicated underutilization of resources, suggesting potential for yield improvement. However, farmers face challenges including labour scarcity, quality planting material, price fluctuations, and inadequate storage facilities in production and marketing.

The spillover effect of export on total factor productivity of enterprises: panel data approach in Vietnam

PurposeThis study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.Design/methodology/approachThis study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.FindingsThe results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.Research limitations/implicationsThis study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.Practical implicationsThe study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.Originality/valueThis study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373

Modelización bionómica de poblaciones de peces hiperestables. La pesquería de curvina golfina, Cynoscion othonopterus, como estudio de caso

Catch and fishing effort data are generally available, hence surplus production models are commonly used to conduct assessments. However, hyperstability resulting from spawning aggregations (SA) pose challenges to determine status and inform management of many fisheries resources. Using data from 1991 to 2019, we develop a method to study hyperstable fished stocks relaxing the assumption of constant catchability, hence direct dependence of catch-per-unit-effort and biomass. Information criterion was used to choose the best model including a Cobb-Douglas function for gulf corvina (Cynoscion othonopterus), a sciaenid fish endemic to the gulf of California managed through annual quotas. Bionomic stock-reduction models were fit using catch, effort, published natural mortality, virgin biomass, and economic structure. Models were solved using maximum likelihood and the best model chosen with Akaike information criterion. Current fishing effort is beyond bionomic optimum. This deserves a precautionary approach to protect this endemic species and sustain the fishery.

A Study of the Economic Productivity of Several Countries Using a Modified Cobb-Douglas Function

The study analyzes the dynamics of economic productivity in 44 countries using a modified Cobb-Douglas production function. Aside from continuous variables such as labor, capital and energy, this model also accommodates non-continuous variables in order to provide a more accurate representation of the economic relationships. The findings reveal some rather intriguing results regarding the returns to scale and the influence of government and natural disasters on economic output. Negative returns to scale in certain countries can be attributed to factors such as declining working hours and unemployment. The 'Government' variable, despite revealing positive coefficients for most of the countries analyzed, is still nuanced in nature and requires more contextual understanding. The 'Natural Disaster' variable, meanwhile, reveals both negative and positive coefficients, thus challenging conventional wisdom and posing questions about the resilience and adaptability of economic systems in the face of adversity. The study recommends tailored policy interventions, calling for greater specialization and resource allocation in countries with lower productivity levels and sustained innovation in countries with higher productivity levels.

Collaborative development model and strategies of multi-energy industry clusters: Multi-indicators analysis affecting the development of coastal energy clusters

The paper explores Coastal Energy-Based Industrial Clusters (EBICs) and their role in advancing energy efficiency and sustainability through collaborative innovation. Economic growth theory and energy sustainability have been introduced into industrial clusters to illustrate indicators that have a greater impact on the development of EBICs. This paper proposes an EBICs development model based on the Cobb-Douglas function, in which accounts for various factors that drive the progress of such clusters. The outcomes of the economic model also provide insights into how the interaction of various factors affects the economic growth of EBICs and their eventual dominance in the energy market of coastal regions, dependent on gradually investing in areas such as research and development (R&D). Different development strategies demonstrate that the final development of a cluster has low dependence on the cluster's initial advantages. The study also illustrates how clusters can gradually monopolize the energy market, even with initial disadvantages. Through quantitative analysis, it showcases the transformation process of developing advantageous clusters into sub-clusters. Next, an energy symbiosis framework for coastal is proposed, which places greater emphasis on the multi-energy complementary system and reduces production costs. Finally, this paper also sheds light on shaping energy strategies for public authorities who shape economic policies at various levels of aggregation and in diverse dimensions.

Pengaruh Luas Lahan, Benih, Tenaga Kerja, Herbisida, dan Pengalaman Berusahatani terhadap Produksi Kacang Tanah di Desa Lindo Kecamatan Wadaga Kabupaten Muna Barat

This study aims to determine peanut production in Lindo Village, Wadaga District, West Muna Regency, and determine the effect of land area, seeds, labor, herbicides, and farming experience on peanut production in Lindo Village, Wadaga District, Muna Regency. West. This research was conducted in Lindo Village, Wadaga District, West Muna Regency, from December to February 2022. This research used the census method on a population of all peanut farmers in Lindo Village, totaling 53 families, all of whom were respondents in this study. The data used in this study is quantitative data obtained from two sources: primary data from direct interviews with respondents and secondary data from the Central Bureau of Statistics of West Muna Regency. The dependent variable in this research is peanut production, and the independent variables are land area, seeds, labor, herbicides, and farming experience. Data analysis used descriptive qualitative analysis and Cobb-Douglas function regression analysis. The results showed that (1) peanut production in Lindo Village, Wadaga District, Muna Barat Regency was 39,816 kg/ha with an average of 751.25 kg/ha, and (2) Simultaneously (together) the independent variables, which included area land (X1), seeds (X2), labor (X3), pesticides (X4), and farming experience (X5) have a real influence on peanut production. Partially, land area (X1) and seeds (X2) have a positive and significant influence on peanut farming production, while labor (X3), pesticides (X4), and farming experience (X5) do not affect peanut farming production. Based on the research results, several suggestions can be submitted, namely, farmers to increase farmer production in peanut farming by expanding land, increasing the use of seeds, adjusting the use of herbicides and labor, and increasing the use of inputs to maximize production. The government can provide counseling and guidance, more intensive technical assistance to increase peanut production, and facilities or infrastructure assistance in peanut farming.

Plant capacity utilization with piecewise Cobb-Douglas technology: Definition and interpretation

Convex and nonconvex nonparametric technologies have been applied to estimate plant capacity utilization. However, they face challenges in capturing the production characteristic that involves the simultaneous consideration of increasing, constant, and decreasing marginal production rates along the production surfaces, which may be inconsistent with the standard microeconomic production theory. This inconsistency raises concerns regarding the potential bias of plant capacity utilization estimates. Thus, this paper introduces a new plant capacity utilization measure based on the piecewise Cobb–Douglas technology, aligned with the standard microeconomic production theory. This measure is defined using two multiplicative directional distance functions with optimal endogenous directions. It can be interpreted by the Euclidean distance between two points associated with optimal capacities and the Euclidean norm of one optimal endogenous direction vector. The new measure captures potential production slacks to measure plant capacity in the sense of Pareto–Koopmans efficiency. It also suggests a remedy of non-existence of a maximal plant capacity in the Cobb–Douglas function by utilizing the piecewise Cobb–Douglas technology. The proposed plant capacity utilization measure is validated using a secondary dataset of 19 Chilean hydroelectric power plants.

Impact of Climate Change Assessments on Horticultural Crop Dynamics in Tamil Nadu, India

Aim: This study aims to analyze the dynamics of horticultural crop production in Tamil Nadu amidst climate change, focusing on trends, challenges, and opportunities across diverse agro-climatic zones, primarily considering variations in rainfall.
 Data: The research utilizes comprehensive datasets spanning a decade (2012-13 to 2021-22) encompassing records of rainfall, horticulture cultivation area, and production. The study focuses on major horticultural crop categories, including fruits, vegetables, plantation crops, spices and condiments, medicinal and aromatic crops, and flowers.
 Objective: (1) analyze compound annual growth rates of area, production, and productivity of key horticultural crops in Tamil Nadu, (2) conduct decomposition analysis over a decade for horticultural crops, and (3) assess climate change impact on agricultural production in Tamil Nadu focusing on rainfall patterns.
 Methodology: The study utilizes various analytical tools, including Compound Annual Growth Rate (CAGR) analysis, percentage analysis, decomposition analysis, and the Cobb-Douglas production function. Secondary data from government publications, including the Season and Crop Report of Tamil Nadu and the Department of Horticultural and Plantation Crop Report of Tamil Nadu, are utilized for analysis.
 Results: The analysis reveals intricate patterns influenced by climate variability, with certain zones demonstrating harmonious growth, while others contend with challenges related to cultivation and productivity. The decomposition analysis highlights the respective contributions of changes in cultivation area and crop yield to variations in production, underscoring the impact of climate change on agricultural dynamics. Additionally, the Cobb-Douglas production function analysis indicates significant effects of both rainfall and cultivation area on horticultural production, emphasizing the multifaceted nature of factors influencing production trends.

Calculation and Cause Analysis of Hidden Unemployment—A Case Study of the Northeast State-Owned Forest Areas in China

The Northeast State-owned Forest Areas comprise the largest region of resources in China. The transformation of the Northeast State-owned Forest Areas is due to various stimuli, such as policies, systems, and markets. In the context of ecological construction and the reform of the state-owned forest system in Northeast China, these have undergone a transformation in terms of economy, society, and ecology. However, a mismatch persists between employment and industrial structures, leading to hidden unemployment. This study employs the framework of hidden unemployment theory, utilizing the Cobb–Douglas production function to quantify the hidden unemployment rate, revealing the relationship between transformation and hidden unemployment. Through this analysis, the underlying causes of hidden unemployment in Northeast China’s state-owned forest regions are scrutinized. There is a bidirectional causal relationship between ecological transformation and hidden unemployment, while there is a unidirectional causal relationship between economic transformation and hidden unemployment. Variance decomposition analysis highlights the substantial contribution of social transformation, followed by economic transformation, with ecological transformation playing a comparatively smaller role. Based on the above research, this article proposes expediting the reforms within the forest industry groups, facilitating the separation of governmental and corporate interests. Additionally, it advocates for strategic forestry development planning to effectively absorb surplus labor, and proposes three policy directives aimed at supporting forest area employees, including provisions for job transfers and reemployment opportunities.

Does Quality Certification or Product Diversification Improve the Performance of Small and Medium Enterprises?

This study utilizes a Cobb–Douglas production function and an instrumental variables regression approach to analyze the impact of quality certification and product diversification on asset productivity at the firm level. Analyzing a panel dataset of approximately 2500 firms from 2011, 2013, and 2015 showed that regional norms significantly influence adoption behaviors, which vary across industries and business types. The study reveals that firms employing computers and those with a larger scale are more inclined to adopt these strategies. The results showed that quality certification enhances asset productivity by approximately 26%, highlighting its positive role. In contrast, firms with diversified products exhibit about 18% lower asset productivity than mono-product firms, suggesting a trade-off inherent in diversification. The study concludes with policy recommendations emphasizing the promotion of quality certification while carefully considering the complexities and potential inefficiencies arising from product diversification strategies.

Efficiency of labor allocation: An observation in Indonesian Standard Industrial Classification (ISIC)

This study aims to analyze the efficiency and elasticity of the large and medium manufacturing industry sector in Indonesia from 2012 to 2020. The analysis focuses on the 24 subsectors within the 2-digit Indonesian Standard Industrial Classification (ISIC) principal groups 10 to 33. The efficiency level of the manufacturing industry sector was analyzed using the Cobb-Douglas production function model with linear logarithmic transformation. During the period 2012–2020, the production efficiency of the 24 ISIC 2-digit subsectors increased by an average of 445%, or 4 times higher than before. The ISIC 2-digit subsector (24 subsectors) had output elasticity values smaller than one (EL < 1) or inelastic 45 times. This indicates that the marginal value added of labor was lower than the average value added of labor. Therefore, the additional allocation of labor in large and medium industries tends to reduce the average value added of labor. The computer industry, electronic and optical goods computer, electronic and optical goods had the highest efficiency index in order, according to the data. This can be achieved by focusing on industries such as ISIC 17 (paper and paper goods industry), ISIC 31 (furniture industry), and ISIC 29 (motor vehicle, trailer and semi-trailer industry). To improve the efficiency of labor allocation, it is necessary to optimize the use of labor resources, increase productivity, and remain competitive in the market. To improve efficiency and elasticity, it is recommended to implement a robust workforce planning strategy that aligns labor resources with production needs. Additionally, matching the skills and abilities of the workforce with job roles is crucial. Finally, identifying tasks that can be automated using technology can also increase efficiency.

The impact of ICT and intangible capital accumulation on employment growth and labour income shares

This paper investigates the impact of the accumulation of tangible capital, ICT and intangible capital assets like software and databases or R&D on employment growth and the changes in labour income shares at the country-industry level. The econometric analysis is derived from a Cobb–Douglas production function taking into account the stylised fact that the capital–output ratios are rather constant or increasing over time with the latter being the case particularly for ICT and intangible assets. The accumulation of tangible assets like machinery and transport equipment then has a relatively strong positive relation to employment growth. Further in line with the theoretical outline, the accumulation of ICT assets or intangible assets are less strongly related to employment growth. Both these conjectures are confirmed econometrically. The impact on labour income shares is mixed, but generally small.

Farmer’s Income and Allocative Efficiency Analysis in Rice Production in Koto Tangah Subdistrict Padang City

The low productivity of lowland rice (Oryza sativa L.) in Koto Tangah District is affecting farmers’ income. The objectives of this research were to analyze : (i) income from lowland rice cultivation, (ii) factors that influence rice production, and (iii) the efficiency of utilization of lowland rice production factors in Koto Tangah District. The method used in this research was quantitative, using probability sampling techniques with proportional random sampling method and 44 respondents were involved. The data analysis techniques used were income analysis, Cobb-Douglas production function, T-test (partial), F-test (simultaneous), coefficient of determination, and efficiency analysis. Based on the survey results, it was known that the total income from lowland rice cultivation in Koto Tangah District was IDR2,607,860.36/average land area/ MT, and lowland rice cultivation was possible with an R/C value of 1.21. The factors that influenced lowland rice production in Koto Tangah District were land area, seeds, and chemical fertilizers, which significantly affected production levels. In contrast, pesticides, labor within the family, and labor outside the family do not significantly affected lowland rice production in Koto Tangah District. Although production factors such as land area, seeds, fertilizers, pesticides, and family labor (TKDK) were still inefficient, non-family labor (TKLK) had almost reached an efficient level.

Algorithm for identifying parameters of production function models using a neural network

The purpose of the work is to ensure the monitoring and reliability of statistical data used for the analysis and forecasting of the production development on the basis of generalized indicators that take into account the volume of resources used and the ways of their use. An algorithm for parametric identification of production functions models from time series of statistical data using generalized regression, which provides the best estimation of the parametric optimization error by the method of least squares, is proposed. In contrast to existing assessment methods, neural networks are used to build models, which significantly expand the technical capabilities of modeling and contribute to improving the accuracy of calculations through the use of neural network technologies. It is shown that in order to solve the problems of this class, it is advisable to use generalized regression neural networks with simple training modes and high modeling accuracy. As a result, it is possible to propose an algorithm for quantitative assessment of the production functions parameters, which consists in the construction of a neural model with its subsequent use to fit the trajectory of the production model of a given structure to the obtained data by means of recurrent estimates of the vector of the desired coefficients at a given initial approximation. The proposed algorithm is demonstrated by estimating the parameters of the Cobb-Douglas production function and the discrete-dynamic model of the consumption function according to the corresponding statistical series. The calculations are performed using the functions of the Neural Networks package of the MATLAB software environment. The algorithm is applicable for quantitative estimation of the production models parameters with complex logical-probabilistic relationships, as well as for obtaining numerical values of target indicators and indicators for assessing the inland water transport development by statistical series and monitoring.