This paper proposes a new resource allocation mode based on DEA models and elasticity analysis for a certain kind of resource allocation problems. It takes into account both the relative efficiency and the returns-to-scale of the decision making units. The decision maker can adopt it to comprehensively evaluate the departments’ production capacity and their potential production capacity. At las...

In this paper, we present a cooperative model of a hierarchically structured firm to study wage differences between different levels in such a firm. We consider a class of wage functions that are based on marginal contributions to production. It turns out that the wage of a manager is always at least as high as the wage of its subordinates. On the other hand, the wage of a manager never exceeds...

We study the effects on inequality of a ”Piketty transition” to zero growth. In a model with a worker-capitalist dichotomy, we show that the relationship between inequality (measured as a ratio of incomes for the two types) and growth is complicated; zero growth can raise or lower inequality, depending on parameters. In particular, the elasticity of substitution between capital and labor in pro...

This paper examines the determinants of commodity futures hedging and of risk premia arising from covariation of the futures price with stock market returns, and with the reve? nues of producers. Owing to supply shocks that stochastically redistribute real wealth (surplus) between producers and consumers, and to limited participation in the futures market, the total risk premium in the model is...

This article introduces a supply-side perspective to the study of counterterrorism, where terrorists are viewed as combining terrorist attacks to achieve an aggregate output (e.g., social anxiety). With this novel approach, the elasticity of substitution, associated with the terrorists’ production function, becomes a key determinant of the effectiveness of deterrence. If this elasticity is larg...

Wealth inequality is currently rising in rich countries. Expectations that ever more intelligent machines might replace people’s jobs amplify the concerns about an increasingly unequal wealth distribution. We examine how capital tax-financed public investment affects the distribution of wealth when the substitutability between capital and labor changes. We consider a setting with a labor-augmen...

The Doi kinetic theory for flows of homogeneous, rodlike liquid crystalline polymers (LCPs) is extended to model flows of nonhomogeneous, rodlike LCPs through a nonlocal (long-range) intermolecular potential. The theory features (i) a nonlocal, anisotropic, effective intermolecular potential in an integral form that is consistent with the chemical potential, (ii) short-range elasticity as well ...

where Y is total output (or income), t is time, H is the stock of capital, and L is the labor supply. The parameter α ∈ (0, 1) is a distribution parameter, and σ = 1/(1 − ρ) is the elasticity of substitution between capital and technology-augmented labor. The CES function is among the most commonly employed production functions, and was among the original models presented by [2]. The CES is a g...

this paper tries to analyze the impacts of intermediate goods trade on production, consumption, investment, net exports, employment, labor wage and capital rent of iran in its bilateral trade relations with china. this analysis has been done by modeling, solving and calibrating an international real business cycles (irbc) model in period 1980-2009. the results show that when elasticity of subst...

To what measure does the CES (constant elasticity of substitution) property determine production functions? We show that it is not possible to find explicitly all two variable production functions f(x, y) having the CES property. This slightly generalizes the result of R. Sato [16]. We show that if a production function is a quasi-sum then the CES property determines only the functional forms o...