Cobb-Douglas Research Articles

About the approach to measure company’s network capital

In modern scientific literature the category of «capital» is beginning to be applied to a wide range of company assets that can bring economic benefits over a long period of time. Various researchers distinguish human, intellectual, social, network and other types of capital. This makes it urgent to develop new approaches to assessing various types of capital, taking into account their complementary specificity. Within the framework of this article the task is to propose a new approach to measure company’s network capital. Existing methods for estimating company’s value are often based on summing up the costs of individual types of capital. However, such an additive approach does not consider the complementary nature of different types of capital. The work proposes to use a multiplicative approach based on the modified Cobb–Douglas function, which takes into account property and network capital as well as the economic efficiency of the company. This approach takes into account the complementarity of different types of capital and their combined impact on the value of а company. Seven leading global companies in the IT industry (Microsoft, Apple, Oracle Corp., Alphabet, Baidu, Meta, Twitter) were chosen as the empirical basis for the study. The proposed approach made possible to compare the network capital of different companies and identify the factors influencing its accumulation.

Biodiversity risk and firm performance: Evidence from US firms

AbstractBiodiversity loss is considered as a critical global challenge with significant implications for ecosystems, economies, and societies. While the importance of biodiversity conservation is widely acknowledged, the extent to which biodiversity risk impacts firm performance remains an under‐explored area of research. This paper examines how biodiversity risk affects firm performance using a new measure of firm‐level biodiversity risk generated from textual analysis of firms' 10‐K reports. Our multivariate analysis shows that biodiversity risk significantly hinders performance of firms in the United States during the 2001–2021 period. The finding holds well after controlling various confounding factors, using alternative variable measurements, model specifications, and correcting for endogeneity problems in the biodiversity risk‐firm performance nexus. Besides decreasing sales growth and profitability, biodiversity risk increases in the cost of goods sold, as explained by the Cobb–Douglas production function. Interestingly, we find that the effect is stronger for firms in biodiversity‐sensitive industries, weaker for firms with more product innovation, and remains insignificant for firms with top‐tier performance. Our study provides policy and practical implications for businesses to mitigate biodiversity risk in this contemporary era of ecological degradation.

Analysis of Resource Use and Production Efficiencies of Broiler Farming in Punjab

The study was conducted and examined using primary data collected from 100 broiler farms, which were applied through a probability proportion sampling method across all the regions of Punjab state. The Cobb-Douglas production function was used to determine the factors affecting broiler production and resource-use efficiency. The coefficient of day-old chicks and broiler feed were positive and significant at a 1 per cent level and affected the gross return of all three categories and overall units. The miscellaneous items were positively significant at a five per cent level only on overall broiler farms. If expenditure on items comprising miscellaneous costs increased by one per cent, it may increase the gross returns by an average of 0.074 per cent. The efficiency indicators of broiler feed showed that feed was overutilized in all categories. The overall ratio of meat-feed was 1.70, which clearly showed that for every rupee spent on feed, it could return to 1.70. The large broiler farms were more desirable value in both feed conversion ratio and meat-feed or output-input ratio. The study suggested that broiler feed was over-utilized, and there is a need to stop wastage of broiler feed.

A New Approach for Calculating Ship Emissions and Energy Efficiency of a Fleet Using the Cobb-Douglas Function

A New Approach for Calculating Ship Emissions and Energy Efficiency of a Fleet Using the Cobb-Douglas Function

Analysing forced migration’s impact on Ukraine’s economic sustainability

Purpose. To characterize consequences of forced migration from Ukraine to European countries, quantifying its impact on economic growth, the number, income of the economically active population, investment and industry of Ukraine, and to develop recommendations for overcoming the negative economic effect of migration. Methodology. The methods of analysis and synthesis, scientific abstraction, statistical analysis, economic and mathematical modeling, and graphical analysis were used. Findings. The article studies the factors that caused forced migration from Ukraine’s to European countries as well as the main differences in migration processes provoked by Russia’s war against Ukraine are substantiated. The economic effects and consequences of its impact on the Ukrainian economy are analyzed. The study is based on statistical data characterizing economic growth (GDP) and the factors that determine it (capital investment, economically active population). On the basis of the Cobb-Douglas production function with neutral scientific and technological progress or Hicks scientific and technological progress and the use of linear regression analysis methods, the relationship between changes in the number of economically active population and economic growth is established. Originality. A forecast of changes in GDP under the influence of forced migration of the economically active population of Ukraine in 2023 is calculated and three main scenarios of GDP dynamics are developed in accordance with these forecasts. Each of them envisages a significant drop in output under the influence of migration. Practical value. The article proposes ways to address the problem of forced migration in Ukraine’s economy and the consequences of its negative impact on sustainable development based on the experience of European countries. Ways to restore industry and attract investments to Ukraine are substantiated.

The carbon emission reduction benefits of the transformation of the intensive use of cultivated land in China

The transformation of the intensive use of cultivated land has an important impact on agricultural carbon emissions (ACE). However, the existing research on the impact mechanisms of the transformation of intensive use of cultivated land on carbon emissions is not clear. In view of this, this study constructs the impact mechanism of the transformation of intensive use of cultivated land on carbon emissions from the perspective of production factors substitution based on the theory of induced technological change and the theory of marginal returns. Using the Cobb-Douglas production function, this study identifies the transformation patterns of intensive use of cultivated land in China from 1980 to 2021. Furthermore, this study simulates the carbon emission reduction benefits brought about by the transformation of the intensive use of cultivated land by considering the cost of agricultural production. The results show that, first, from 1980 to 2021, the price of agricultural labor increased by 224.10%, while the price of other agricultural production factors significantly decreased. China’s intensive use of cultivated land methods has undergone four stages: agricultural labor–intensive (ALI), yield–enhancing factor–intensive (YEFI), labor–saving factor–intensive (LSFI), and innovation factor–intensive (IFI). In 2021, most of China’s provinces were in the YEFI or ALI stages. Second, between 1993 and 2021, the transformation of China’s intensive use of cultivated land brought about an 87.48% increase in carbon emissions, while the spatial clustering effect of carbon emissions weakened. Furthermore, the results show that, the transition of the use of cultivated land from ALI to YEFI and YEFI to LSFI will reduce carbon emissions by 7.89%, and input factors costs will increase by 23.85%. If all regions, except for those in the IFI stage, transition to the LSFI model, it will result in a 17.56% reduction in carbon emissions, with a corresponding increase of 33.40% of the input factors input costs. This research enriches the theoretical foundation of literature about the transformation of the intensive use of cultivated land. It also expands the research perspective on agricultural carbon emissions. This research also helps provide references for the direction of the transformation of the intensive use of cultivated land in China and the achievement of the dual carbon goals.

Financial participation, productivity and conflict in French firms

ABSTRACT Many studies show that financial participation – such as profit sharing and employee share ownership – have positive effects on productivity and social performance (reducing absence and labour turnover). A recent study shows that profit sharing and employee share ownership also reduce conflicts. The question then arises whether the profit sharing and employee share ownership continue to affect productivity directly, or whether their effects result entirely from reduced conflict? To answer this question, we use a sample of 2747 French firms in 2015 and 2016, to estimate a Cobb–Douglas production function. Profit sharing had a highly statistically significant, positive effect on productivity, but employee share ownership (alone) was not significant. These results are not sensitive to the inclusion of conflicts. To allow for selection of firms into profit sharing and/or employee share ownership, we use treatment effects models where our treatment uses combinations of the two. Our results show first that profit sharing alone, employee share ownership alone, and the two combined significantly raise productivity. These effects are even larger with treatment models, and they are also not sensitive to the inclusion of the conflict variables. The paper thus documents further evidence for the positive impact of financial participation on firm productivity independently of conflicts.

EFISIENSI TEKNIS DAN FAKTOR YANG MEMPENGARUHI PRODUKSI PADI LOKAL SIGUPAI DI KABUPATEN ACEH BARAT DAYA (Technical Efficiency and Factors Affecting the Production of Local Sigupai Rice in Aceh Barat Daya Regency)

Sigupai rice is highly sought after and has significant economic value. Despite its popularity, the production of Sigupai rice remains relatively low. This study aims to identify the factors influencing the production, technical efficiency, and sources of inefficiency in Sigupai rice farming in West Aceh District. Data was collected from all 31 Sigupai rice farmers in the region and analyzed using the stochastic frontier Cobb-Douglas production function. The results indicate that Sigupai rice farming has achieved a technical efficiency level of 0.80. Land area, seed quantity, and fertilizer were found to significantly influence rice production. However, farmers' age, experience in cultivating Sigupai rice, and education did not have a significant impact on technical inefficiency.To improve the efficiency of Sigupai rice farming, it is recommended to optimize input utilization, including proper land planning and soil management. Additionally, the use of certified Sigupai rice seeds and efficient fertilization techniques can contribute to increased productivity.

A comparative analysis of optimal high-speed railway station locations: downtown versus suburbs

ABSTRACT This study aims to resolve the high-speed railway (HSR) station location dilemma, balancing central urban convenience and suburban urbanization promotion, to maximize the gap between a city’s Gross Domestic Product and the costs associated with station location. Two critical accessibilities are introduced: intra-city and inter-city. A Cobb–Douglas production function is constructed using the two accessibilities and the city’s built-up size to analyze the impact of HSR station location on urban land use. Additionally, the location associated costs were estimated. The Lowry model was adopted to examine employees’ decisions regarding their work and residential locations and the corresponding costs incurred. A case study of Jinhua demonstrated that the optimal HSR station location falls within intermediate zones where the level of urbanization closely resembles that of the downtown area. The findings indicate that locating HSR stations in intermediate zones can balance urbanization and accessibility, optimize land use, and minimize the associated costs.

Evaluation of the Impact of the Internet of Things on Postal Service Efficiency in Slovakia

This paper investigates the impact of technological advancements, particularly the integration of the Internet of Things (IoT), on the efficiency and productivity of the postal service industry in Slovakia. By employing the Cobb–Douglas production function, we analyze the relationship between key inputs—capital and labor—and output for six major postal service providers: Slovak Post, Packeta, DHL Express, DPD, TNT Express, and GLS. Using data from 2017 to 2021, this study quantifies the elasticities of capital and labor to assess how IoT adoption influences operational performance. The regression analysis reveals significant variations in input contributions across companies, highlighting the diverse effects of IoT integration. Findings suggest that while some companies benefit more from capital investments in technology, others rely heavily on labor efficiency. These insights offer valuable implications for policymakers and industry stakeholders aiming to optimize resource allocation and enhance productivity through technological innovation.

Economic study of Binadhan-22 production in some selected areas of Bangladesh

This study was conducted in four districts of Bangladesh, namely Mymensingh, Bogura, Naogaon and Rangpur to estimate the profitability and factors affecting gross return of the variety. This study was based on primary data which were collected from 200 Binadhan-22 growing farmers. In the sampled areas data were collected through pre-designed interview schedule from January-February, 2023. Tabular, descriptive statistics and Cobb-Douglas production function model were used to fulfill the objectives. It was found that Binadhan-22 production is profitable. The average net return per hectare was Tk. 28876. The net return was highest in Rangpur (Tk. 32480/ha) followed by Naogaon (Tk. 28554/ha), Mymensingh (Tk. 27331/ha) and Bogura (Tk. 27139/ha), respectively. Benefit cost ratio was estimated at 1.39 and 2.04 on full cost and variable cost basis. Cobb-Douglas production function was chosen to determine the factor affecting gross return of Binadhan-22 production. All of the factors namely, human labour cost, power tiller cost, seed cost, fertilizer cost, irrigation cost, insecticides cost were statistically significant and positive. The regression coefficients for farming experience and agricultural training under all areas had negative but significant relationship at 5% and 10% level, respectively. The regression coefficient of age was positive and significant at 10% level. Under all areas, the regression coefficients of education and farm size were positive but not significant. Farmers faced some constraints in cultivating of the variety. The first ranked constraint was lack of availability of seeds (93%). Other constraints were lack of training (61%), lack of capital (38%) and lack of technical know-how (16%). In addition to helping farmers use a better combination of inputs that will create higher productivity and return, effective extension services may also assist farmers in cultivating rice in a way that will contribute to food security and self-sufficiency. Bangladesh J. Nuclear Agric, 38(1): 81-91, 2024

Can Rice Farming through the National Strategy Food Estate Increase Regional Production?

Food estate is a large-scale food development program that is carried out in an integrated manner. This includes agriculture, plantations and livestock within an area. This research aims to (1) analyze the production factors of lowland rice farming as an effort to increase rice production in the national food estate strategy program in Central Kalimantan; (2) analyze the technical efficiency of lowland rice farming in an effort to increase rice production in the national food estate strategy program in Central Kalimantan. This research was carried out at the Siam Village Food Estate (COE). The sampling method used a random sampling method with a total sample of 89 people. The analysis method uses Cobb-Douglas production function analysis and Frontier Stochastic technical efficiency analysis. Research results: (1) land (X1), seeds (X2), lime (X3), and fertilizer (X4) have a significant effect (α<0.05) on lowland rice production results in the Balanti Siam village food estate, while pesticides (X5), labor (X6), machinery (X7), planting system dummy (D1), and planting pattern dummy (D2) do not have a significant effect on lowland rice production results on food aesthetic land in Balanti Siam village; (2) Farmers in Balanti Siam village are classified as technically efficient with an average technical efficiency of 96.5% (cut-off > 0.70), while individually there are 88 farmers who are classified as technically efficient. The production factors used in rice farming play an important role in production results. By using production factors efficiently, this can increase maximum rice production yields.

Unraveling the Dynamics of Rice Yield in the Zio River Valley, Togo: A thorough analysis of influencing factors

Despite Togo's rice production potential, local production only meets 32% of demand, mainly due to relatively low agricultural productivity. With the aim of improving this situation, this study was undertaken to analyze the factors influencing rice production in the Zio River Valley, which is one of Togo's largest rice-growing areas. Data collected from 413 farmers in the region were analyzed using the Cobb-Douglas production function, incorporating variables such as income, farm size, chemical fertilizer use, organic fertilizer use, pesticide use, group membership, experience, education level, gender, access to credit, access to agricultural advice, age, continuous access to water and marital status. The results indicate that only certain factors, such as farm size, income, amount of chemical fertilizer, use of organic fertilizer and experience, have a significant positive impact on paddy rice production, furthermore the No-formal education farmers show a decrease in production. This study will guide decision-makers and farmers in adopting more effective farming practices to significantly improve rice production in Togo. Emphasis should be placed on aspects such as farm size, income, fertilizer use and experience to boost rice productivity.

Factors Affecting the Labor Productivity of Garment Firms in Nam Dinh Province, Vietnam

Under the impacts of the 4th Industrial Revolution, garment firms in Vietnam are facing various challenges, and improvement in their labor productivity is one of the important measures to overcome these challenges. This study, therefore, investigated the determinants of the labor productivity of garment firms in Nam Dinh province. The data used for this study were extracted from the Enterprise Survey Dataset in 2021, and descriptive statistics, comparative analysis, and the Cobb-Douglas function in logarithm form were the major methods employed for the study. The study findings underscored the positive impacts of fixed assets and business management costs, average payments to employees, exporting activities, and the utilization of internet resources on labor productivity. The study revealed that firm size, gender composition, and age of firm leaders do not significantly influence labor productivity, emphasizing the complexity and industry-specific nuances of these relationships. Based on the insights gained from the study, several strategic suggestions were proposed to improve the labor productivity of garment firms in Nam Dinh province in the future.

Comparison of Cobb-Douglas Production Function with Deep Learning Models to Estimate the Productivity of Organised Manufacturing Sector - Indian Perspective

The production function defines the output of a firm, industry, or economy based on various combinations of inputs. This study focuses on estimating the production function of India's manufacturing sector and determining the relationship between its inputs and outputs. To predict the output, measured as Gross Value Added (GVA), the study applies the Cobb Douglas Production Function (CDPF) along with several deep learning techniques, including Feedforward, Recurrent, Long Short-Term Memory (LSTM), and Bidirectional LSTM networks. Model performance is evaluated using metrics like Mean Square Error (MSE), Mean Absolute Error (MAE), Root Mean Square Error (RMSE), and Mean Absolute Percentage Error (MAPE). The results indicate that the Cobb Douglas Production Function outperforms the deep learning models in predicting GVA for the organized manufacturing sector in India.

Estimation of the impact of investment in fixed assets and employment on GDP using the Cobb-Douglas function

The main objective of the study is to determine the degree of influence of labor and investment in fixed capital on the total volume of output in Kazakhstan. The paper uses the multiple regression analysis method based on the Cobb-Douglas production function. The results of the empirical analysis showed that with a change in investment in fixed capital by 1%, the volume of production will increase by an average of 0.747%. Accordingly, with a change in the number of employed people by 1%, the volume of production will increase by an average of 2.589%. The study revealed a low contribution of technological progress to the development of the manufacturing industry. Based on the analysis, a conclusion was made about the presence of increasing returns to the scale of production, since the sum of the elasticity coefficients of production for capital and labor is greater than one. The high rate of contribution to labor costs (2.589%) indicates that the growth of labor intensity in the manufacturing industry of Kazakhstan has a stimulating effect on the economic growth of production, and also brings a positive economic effect to production.

Digitalization and Automation and AI: A Theoretical Framework of rethinking the Pollution Haven Hypothesis

This theoretical paper investigates the impact of digitalization, automation, and artificial intelligence (AI) on environmental regulations, specifically through the lens of the Pollution Haven Hypothesis (PHH). It explores how these advancements influence pollution intensity and environmental compliance costs, challenging the traditional understanding of the PHH. Methodology. The study employs a Cobb-Douglas production function to model the relationship between technological innovations and environmental regulations. By integrating digitalization, automation, and AI into the model, the paper examines how these factors affect the economic incentives for firms to relocate to regions with lenient environmental standards. Findings. The analysis reveals that advancements in digitalization and automation reduce pollution intensity and lower the costs of complying with strict environmental standards. As a result, the economic incentive to relocate to pollution havens diminishes. In an open economy, the combination of stringent environmental policies and technological innovations leads to reduced pollution levels and a shift toward cleaner production processes. Practical Implication. The findings suggest that integrating technological innovations into environmental policy can make adherence to stricter regulations more economically viable, thereby weakening the appeal of pollution havens. This has significant implications for global sustainability efforts, as it highlights the potential for technology to support more effective and equitable environmental regulations. Originality. This study introduces a novel perspective by directly linking technological innovations to shifts in capital allocation and the efficacy of environmental policies. It offers a fresh understanding of the PHH in the context of modern advancements, providing new understanding into the relationship between innovation and environmental regulation.

Economic Analysis of Dairy Farming under Drought Prone Area in Maharashtra State of India

Background: Dairy farming is a cornerstone of the rural economy in India. Maharashtra, particularly its drought-prone districts, is critical in this sector. Despite challenges posed by erratic monsoons and limited irrigation, dairy farming remains a viable strategy for economic stability in these regions. The aim of this study was to examine the financial aspects of dairy enterprises, focusing on socio-economic characteristics, economic viability and constraints faced by farmers. Methods: The study employed a multistage stratified random sampling method. Key analytical tools included average and percentage calculations, BEP analysis and a Cobb-Douglas production function. Additionally, Garrett’s ranking technique was used to ascertain constraints in dairy farming, while the MOTAD model assessed profitability and risk. Result: The findings reveal that crossbred cow milk production is more lucrative than buffalo milk production, despite its higher average total expenditure per lactation. Break-even analysis confirmed profitability for both types of milk producers. Key determinants of milk production, such as green fodder, concentrate and labour, suggest areas for efficiency enhancements. Farmer-identified constraints include high feed costs, insufficient veterinary services and water scarcity. Utilizing the MOTAD model, the study recommends integrating dairy farming with crop cultivation to maximize returns, mitigate risks and enhance overall farm resilience in challenging environmental conditions.

Technical Efficiency of Sugar Cane Farming in PT PG Rajawali II Unit PG Sindanglaut

This research aims to determine the profitability and technical efficiency of sugarcane farming in PG Sindang Laut, Cirebon Regency, West Java. The research method used was survey research with 60 respondents of 30 plant cane and 30 ratoon cane. The data analysis used includes (1) descriptive analysis, (2) Cobb-Douglas production function with the SFA approach using Frontier 4.1, and (3) income analysis. The results of this research showed that, land area, seeds, phonska fertilizer, and labor affect sugar cane production in the plant cane category. On the other hand, land area, seeds, phonska fertilizer, and ZA fertilizer affect the technical efficiency of sugar cane farming of ratoon cane category. The factors that influence technical efficiency in the plant cane category are age, farming experience, and family responsibility. While education and farming experience influence technical efficiency in the ratoon cane category. The average income from sugarcane farming in the plant cane and ratoon cane categories is IDR 8,526,816/ha and IDR 13,195,410/ha.

Asymmetric fiscal policies and digital economy development: An empirical analysis based on the global digital value chain perspective

The indicator system for evaluating the development level of the digital economy is multidimensional and dynamic. Accurate and scientific evaluation of the digital economy's development level is crucial. This study, based on the characteristics of the digital economy's development stages, evaluates the value creation dimension of the digital economy from the perspective of the global digital value chain. Additionally, it considers the access and usage dimensions to construct a comprehensive indicator system for evaluating the global digital economy development level. The results reveal significant disparities in digital economy development between countries, but also show that some developing countries have experienced rapid improvements in their digital economy development levels. In theoretical and empirical research, this paper utilizes the Barro Rule and the Cobb-Douglas production function, employing mathematical derivations combined with empirical regression analysis to explore the relationship and mechanisms between asymmetric fiscal policies and digital economy development during economic downturns. It finds that in the new era of the digital economy, governments often implement proactive asymmetric fiscal expenditure policies during downturns. Continuously promoting the development levels of national digital economies is an important mechanism for forming these characteristics of fiscal expenditures. Finally, this study proposes relevant policy recommendations, enriching academic research and policy discussions in the fields of financial fiscal policy and digital economy development.