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Simple efficiency-distribution models of production, with an application to robotics

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  • Stephen J. DeCanio

    (Emeritus, University of California)

Abstract

The “efficiency-distribution” model introduced by Houthakker in 1955 offers a flexible approach to production theory that does not require the measurement of capital and other fixed assets. Thus it avoids the theoretical problems associated with the Cambridge controversies and with Franklin Fisher’s critiques of aggregation. The efficiency distribution model can be empirically implemented using only observed productivity distributions and the share of output received by the non-fixed factors. Applications include estimating, for a variety of potential distributions, the vulnerability of human wages to the introduction of robotic substitutes.

Suggested Citation

  • Stephen J. DeCanio, 2022. "Simple efficiency-distribution models of production, with an application to robotics," SN Business & Economics, Springer, vol. 2(8), pages 1-16, August.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:8:d:10.1007_s43546-022-00260-z
    DOI: 10.1007/s43546-022-00260-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Efficiency-distribution model; Production function; Aggregation; Artificial intelligence; Robotics;
    All these keywords.

    JEL classification:

    • B19 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Other
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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