• The Journal of Fisheries Business Administration
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• v.23 no.2
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• pp.91-99
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• 1992

It has been one of the critical issues that the researchers properly evaluate the fishing rights foregone by the coastal development activities like wetland reclamation. Particularly, estimating the productivity of concerned fishing rights is known to play a significant role in their monetary compensation. As a result, this paper attempts to develop a statistical model characterized by Cobb-Douglas production function in conjunction with the fisheries' productivity estimation. The primary hypotheses involving their statistical production function are as below : 1. The quantity of fisheries production is hypothesized to be expressed as a function of capital (K) and labor(L) put into fishing activities. 2. The estimated parameters of K and L are hypothesized to satisfy the conventional condition of production function as a form of Cobb-Douglas. These statistical tests reveal that the shellfish farming productivity heavily depends on the acre of mariculture while the input of labor force also considerably affects its productivity. In case of the fixed net fishing productivity, both the factors of capital and labor similarly affect the marginal change in its productivity. En addition, the productivity of shellfish (arming turns out to follow the increasing returns to scale, whereas that of fixed net fishing comes up with the decreasing returns to scale.

• Journal of the Korean Statistical Society
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• v.2 no.1
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• pp.3-7
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• 1973

Zellner, Kmenta, Dreze (1966) and later Hedges (1969) showed that consistent estimates of the parameters of Cobb-Douglas or CES production functions can be obtained by the single equation estimation methods if the models incorporate the assumption that firms maximize the mathematical expectation of profits. This note demonstrates that the results of the above-cited works can be extended to a class of VES production function models.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.4
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• pp.85-94
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• 2018

The cultural industry is treated as the sunrise industry in modern society. It has taken an increasing role in promoting the economic growth. Due to this, this paper attempts to explore the dynamic relationship between cultural industry and the economic growth. On the grounds of Cobb-Douglas production function, the cultural industry is regarded as a determinant such as the labor input and the capital input to impact the economic growth. Meanwhile, the quarterly datum form 2000-Q1 to 2017-Q4 are employed to perform an empirical analysis via the vector error correction model. The GDP is treated as an independent variable. The input of capital, the input of labor and the total input of cultural industry are treated as dependent variables. Furthermore, a menu of statistical approaches such as the co-integration test and the impulse response function will be used to testify the dynamic relationship between cultural industry and economic growth. Via the Johansen co-integration test, the results report that the cultural industry has a obviously positive effect on economic growth. Through the vector error correction estimation, the results also report that the cultural industry also has a significantly positive effect on economic growth, but less than that of the Johansen co-integration test. This paper provides a view that the cultural industry is a kind of a determinant to promote the economic growth. Therefore, the China's government should pay much attention to the cultural industry construction.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.35-45
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• 2018

Purpose - The operating mechanism between education input and economic growth is a mysterious proposition that has attracted a vast array of scholars' interests to study on it. Therefore, this paper sets China as an example to analyze the dynamic relationship between education input and economic growth. Research design and methodology - The annual time series from 1990 to 2017 will be employed to conduct an empirical analysis under the vector autoregressive model. The education input is treated as an factor that impacts the economic growth such as labor input and capital input. Meanwhile, the education input will be added to the Cobb-Douglas production function to form a new one so as to explore the dynamic relationship between education input and economic growth. Results - According to the results of empirical analysis, it can be found that the education input has an increasingly positive effect on economic growth. Simultaneously, the economic growth also has a positive effect on education input, but this kind of effect is not steady. Of course, the labor input and the capital input also can promote the economic growth to some degree. Conclusions - The education input is one of most important inputs for a country. Based on the empirical analysis, this paper suggests that the China's government should put more emphasis on the education input so to make its economy develop well.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.7
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• pp.219-229
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• 2022

This study aims to analyze the economies of scale of the cottage industry for coconut sugar production in Banyumas, Indonesia. This study applies a survey method to coconut sugar craftsmen. Data analysis was performed by regression analysis based on the Cobb-Douglas production function approach. The findings indicated that decreasing returns to scale was a problem for the domestic production of coconut sugar. These findings show that the production of coconut sugar is not very productive. Labor and financial capital inputs have a significant positive share but the resulting increase in output is less proportional than the increase in the two inputs. Social capital, experience, and education do not affect industrial performance. To increase input productivity and production efficiency, it is necessary to apply more effective production techniques and technologies to produce quality products so that the selling price can be higher. Additionally, it is required to enhance the sap's quality through its extraction methods and the regrowth of high-yielding coconut tree varieties. From the institutional aspect, the development of this industry requires stronger partnerships with related parties such as local governments, exporting companies, cooperatives, and universities through research and development.

• Korean Journal of Agricultural Science
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• v.24 no.1
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• pp.63-74
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• 1997

This study is aimed at identifying the value of marginal products(VMP) of agricultural labor, capital and land. The resources are the major portion of input costs of agricultural projects. To appraise economic feasibility of agricultural projects, the real value of the resources would be estimated by VMP of the inputs rather than by distorted actual market prices such as rural wages, rent and interest. To convert the market wage rate into shadow wage rate, covertion factor of 0.90 would be appicable based on the study results. To evaluate the right of way and compensation, VMP of land is recommendable to apply in land pricing rather than actural land rent prevailing in rural area which has been underrated on account of labor shortage and difficulty of farming. Discount rate as a opportunity cost of capital should be applied 7-8% considering the VMP of capital and interest rate of foreign loan from IBRD and ADB. For the successful appraisal of the agricultural projects, the recommendation of this study would be applied in the future.

• Architectural research
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• v.7 no.2
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• pp.91-96
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• 2005

The purpose of this study is to clarify the reality of labor and capital productivity in the construction industry through an industry-level approach and to analyze the relationship between labor and capital productivity using a Cobb-Douglas production function. According to the research results, the construction industry has shown a very high capital productivity, while labor productivity has kept up a low level during the 1980s and 1990s. The reason was because of the lack of skillful construction workers and the decrease of capital. Meanwhile, the construction productivity has greatly increased since 2000 when there was no change in wages. This was because of a large inflow of low-wage foreign workers while the amount of value added has dramatically increased due to the liberalized sale price of apartment buildings. According to the analysis by the Cobb-Douglas production function, the elasticity coefficient of V/L to K/L in the construction industry had decreased from 1.1663 in the $1^{st}$ period(1971-1988) to 0.4465 in the $2^{nd}$ period(1989-1997), and to 0.1664 in the $3^{rd}$ period(1998-2003). Such a result means that the allocation of labor has gradually increased while the allocation of capital has decreased. Moreover there was a big increase in allocation of labor after 1998 due to the excessive deterioration of capital. In conclusion, in order to raise the construction productivity and to avoid labor-intensive production methods, investment for capital should be more increased. In particular, new machinery and equipment that can actually substitute human labor in construction sites should be more developed and applied to construction sites.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.968-973
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• 2005

The purpose of this study is to clarify the reality of labor and capital productivity in the construction industry through an industry-level approach and to analyze the relationship between labor and capital productivity using a Cobb-Douglas production function. According to the research results, the construction industry has shown a very high capital productivity, while labor productivity has kept up a low level during the 1980s and 1990s. The reason was because of the lack of skillful construction workers and the decrease of capital. Meanwhile, the construction productivity has greatly increased since 2000 when there was no change in wages. This was because of a large inflow of low-wage foreign workers while the amount of value added has dramatically increased due to the liberalized sale price of apartment buildings. According to the analysis by the Cobb-Douglas production function, the elasticity coefficient of V/L to K/L in the construction industry had decreased from 1.1663 in the 1^st period(1971-1988) to 0.4465 in the 2^nd period(1989-1997), and to 0.1664 in the 3^rd period(1998-2003). Such a result means that the allocation of labor has gradually increased while the allocation of capital has decreased. Moreover there was a big increase in allocation of labor after 1998 due to the excessive deterioration of capital. In conclusion, in order to raise the construction productivity and to avoid labor-intensive production methods, investment for capital should be more increased. In particular, new machinery and equipment that can actually substitute human labor in construction sites should be more developed and applied to construction sites.

• Ocean and Polar Research
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• v.39 no.4
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• pp.301-318
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• 2017

The production of Korean offshore fisheries has been gradually decreasing due to the severe depletion of offshore fisheries resources caused by excessive fishing efforts. The production of the offshore fisheries in 2016 was the lowest since 1975. So the federal and local governments in Korea adopted and implemented various fisheries management plans and policies in order to restore fisheries resources. However, these plans and polices have not been successful in re-establishing fisheries resources. Thus, in order to accurately diagnose the situation with regard to offshore fisheries, this study sought to estimate not only the return to scale by fishing gear of offshore fisheries, but marginal productivity of individual fishing gear based on production factors derived from offshore fisheries production functions. The study was organized in the following manner. First of all, this study estimates production functions of offshore fisheries. The Cobb-Douglas and the translog production functions are adopted as offshore fisheries production functions. Specifically, the functions are estimated by crew, vessels, and offshore resource as production factors. The offshore resource is estimated by the Clarke Yoshimoto Pooley model based on the surplus production model. Secondly, the fisheries production functions are extended to the fixed-effect model and the random-effect model with panel data. Thirdly, this study analyzes the return to scale of offshore fisheries and the marginal productivity of the production factors from the estimated offshore fisheries production function. In conclusion, this study suggests plans and countermeasures for productivity improvement by group (labor intensive or technology intensive) based on the characteristics of individual offshore fishing gear.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.18 no.4
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• pp.283-294
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• 2014

In this paper we study consumption-labor supply decision of an agent who prepares for retirement at a known time in the future. The agent is assumed to have a preference which is represented by the von Neumann-Morgenstern utility function in which the felicity function has constant relative risk aversion over the composite of consumption and leisure. The composite is obtained by the Cobb-Douglas function. A general problem has been studied by Bodie et al. (2004). We contribute to the literature by deriving the Slutsky equations and conducting comparative statics. In particular, we show that wealth effect can exhibit an interesting property depending upon the time until retirement, as the interest rate increases.