CES-FUNCTIONS APPLICATION FOR ENSURING THE EFFICIENT SCENARIO OF INDUSTRIAL ENTERPRISE DEVELOPMENT
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Дата
2020
Назва журналу
Номер ISSN
Назва тому
Видавець
Journal of Modern Economic Research
Анотація
Based on the application of parameter continuation method to a forcedly homogeneous and heterogeneous CES (constant elasticity of substitution) production function in the Cobb-Douglas-Timbergen form, recommendations have been formulated regarding the general technical policy of domestic industrial enterprises at the present stage of economic development of Ukraine. Since the cost of labor resources in Ukraine is almost the lowest in the world, we can conclude that the strategic policy in the field of fixed assets of domestic enterprises claiming competitive position in the world market should be focused on replacing obsolete equipment. The application of the parameter continuation method to a forcedly homogeneous CES production function in the Cobb-Douglas-Timbergen form indicates the possibility of an extremely optimistic intensive scenario for the Ukrainian industry development, which theoretically can grow almost exceptional due to the use of skilled highly paid labor with moderate investment activity in the field of basic production tools. The use of the Cobb-Douglas-Timbergen form of inhomogeneous CES production function with the parameter continuation method made it possible to make more meaningful generalizations regarding the comparative efficiency of using the basic production factors and to give a mathematical interpretation of the outstripping growth in labor productivity law, which consists in the descending nature of the PF (production function) variation curve with respect to the elasticity coefficient of the interchangeability of labor and capital. The influence of non-stationary processes in the economy on the enterprise development scenario has been identified, due to which the “delay” effect has been revealed when a certain trend continues to occur for a certain time even though the conditions of the economic environment have been already changed. The analysis of bordering cases of the production system development based on a comparison of changes in the parameters of the production function has been carried out, a mathematical interpretation of the law of diminishing marginal productivity of the factor has been given. Recommendations on the technological policy of domestic enterprises at the present stage have been put forward.
Опис
Ключові слова
CES production function in the Cobb-Douglas-Timbergen form, parameter continuation method, function variation, elasticity of the labor and capital interchangeability, enterprise technical policy
Бібліографічний опис
Momot, V., & Lytvynenko, O. (2020). Ces-functions application for ensuring the efficient scenario of industrial enterprise development. Journal of Modern Economic Research, 2(2), 53-66. Retrieved from https://denakyrpublishing.science/index.php/jmer/article/view/32