This document provides an overview of the theories of major economists from the mercantilists to Solow on the relationship between technical progress and employment. It discusses the views of thinkers like Smith, Ricardo, Marx, Keynes, Harrod, Domar, and Solow. The mercantilists saw both benefits and risks of technical progress for employment. Classical economists generally believed technical unemployment would be temporary as demand increased. Ricardo argued technical progress could reduce employment by replacing labor with capital. Marx saw capitalism driving continuous technical progress and the replacement of labor. Keynesian economists like Harrod and Domar explored whether market forces ensure full employment during growth. Solow's neoclassical growth model aimed to explain stable growth and
This case study provides an overview of three influential economic thinkers: Karl Marx, Adam Smith, and Friedrich Hayek. It summarizes their key ideas about different economic systems and includes research ideas and practice questions. Karl Marx was critical of capitalism and believed it would inevitably be replaced by communism. Adam Smith advocated for free market economies and said self-interest would lead to efficient resource allocation via an invisible hand. Friedrich Hayek strongly supported free markets and was critical of central planning, arguing governments lack sufficient information to allocate resources effectively.
Very few would dispute the fact that we live in a global world, where local economy, politics and culture do not longer belong to and influence their immediate surroundings alone, but a large extent of the rest of the globe. This context of merging borders has entailed drastic changes in the way goods and services are produced and distributed and in how information and ideas are transmitted. Fashion, both a business and a cultural good, has not been impervious to that: on the one hand, fashion is a multi-billion dollar industry that has to survive in a more and more competitive global market and produce for a trans-continental audience; and, on the other hand, it is also an immaterial good and the way it is transmitted, shared and created changes along with society. Both fashion and globalization are complex and multidimensional phenomena, and the analysis of their connection can be approached by a wide variety of disciplines. Throughout this essay I will analyse what and how has changed in fashion with globalization, focusing on the influence economical and cultural globalization have had in the transmission of trends and the structure and behaviour of the industry. Firstly, fashion is one of the few cultural goods that we carry with us every day and have a role in our daily life, so the way trends are created and transmitted is affected both by changes in the diffusion of culture –as it happened with cultural globalization- and by changes in society. Secondly, fashion industry has, as every other, been affected by economic globalization. However, unlike any other industry, fashion produces ephemeral cultural goods, and so the production of clothes has also been affected by the new model of transmission of trends with cultural globalization.
1. Karl Marx published The Capital, which analyzed the laws governing capitalist economic systems and caused a revolution in economic thinking. It detailed Marx's investigation into the laws governing economic activity.
2. Marx argued that the driving force of capitalism is surplus value, or the unpaid value of workers' labor, which capitalists extract through various means. The total value of commodities is composed of constant capital, variable capital, and surplus value.
3. Various economic schools developed over time to analyze and critique capitalism, including classical economics, marginalism, Keynesianism, monetarism, and world-systems theory. Different countries adopted elements of these schools in their economic planning and development strategies.
Joseph Schumpeter coined the term "creative destruction" to describe how capitalism drives economic progress through the disruption of existing markets by new innovations. This disruption causes some businesses and jobs to fail while creating new opportunities and markets. Schumpeter argued that attempts to prevent this process would ultimately stall economic growth. The document discusses Schumpeter's concept of creative destruction and its role in business cycles and economic transformation over time. It also summarizes Schumpeter's views on other economists like Adam Smith, Karl Marx, and John Maynard Keynes.
Classical Economics developed between the 18th and 19th centuries as an alternative to Marxism. It viewed the market as self-regulating and believed economic growth was driven by interactions between labor and capital. Important early thinkers included Adam Smith, whose works "The Theory of Moral Sentiments" and "The Wealth of Nations" influenced Classical economics, and David Ricardo, whose "Principles of Political Economy and Taxation" built on Smith's theories.
This document provides an overview of several influential theorists in development economics and sociological/political development theories. It summarizes the key contributions and perspectives of thinkers such as Adam Smith, David Ricardo, Thomas Malthus, Karl Marx, Joseph Schumpeter, and others. It also examines the origins and perspectives of sociological theorists including Auguste Comte, Emile Durkheim, Max Weber, and Talcott Parsons. The document analyzes how their work has shaped the study of development economics and sociology.
This document provides an overview of the history of economic thought, outlining major economists and their ideas from ancient times through contemporary economic theory. It discusses early Greek philosophers like Xenophon and Aristotle and their work on household management. It then covers mercantilism and physiocrats before detailing the classical economists like Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx. The document also summarizes the ideas of neoclassical thinkers, Keynes and the development of macroeconomics, monetarism, and concludes with some modern economists like Thomas Piketty.
William Petty, Richard Cantillon, David Hume, and James Steuart were early contributors to classical political economy in the 17th-18th centuries. Petty developed concepts like surplus, fiscal pressure, and distinguishing actual and natural prices. Cantillon developed a circular flow model and theories on money, demand/supply, profit, and population growth. Hume emphasized empiricism and free trade. Steuart published the first book with "political economy" in the title, representing a more systematic view of moderate mercantilism.
This case study provides an overview of three influential economic thinkers: Karl Marx, Adam Smith, and Friedrich Hayek. It summarizes their key ideas about different economic systems and includes research ideas and practice questions. Karl Marx was critical of capitalism and believed it would inevitably be replaced by communism. Adam Smith advocated for free market economies and said self-interest would lead to efficient resource allocation via an invisible hand. Friedrich Hayek strongly supported free markets and was critical of central planning, arguing governments lack sufficient information to allocate resources effectively.
Very few would dispute the fact that we live in a global world, where local economy, politics and culture do not longer belong to and influence their immediate surroundings alone, but a large extent of the rest of the globe. This context of merging borders has entailed drastic changes in the way goods and services are produced and distributed and in how information and ideas are transmitted. Fashion, both a business and a cultural good, has not been impervious to that: on the one hand, fashion is a multi-billion dollar industry that has to survive in a more and more competitive global market and produce for a trans-continental audience; and, on the other hand, it is also an immaterial good and the way it is transmitted, shared and created changes along with society. Both fashion and globalization are complex and multidimensional phenomena, and the analysis of their connection can be approached by a wide variety of disciplines. Throughout this essay I will analyse what and how has changed in fashion with globalization, focusing on the influence economical and cultural globalization have had in the transmission of trends and the structure and behaviour of the industry. Firstly, fashion is one of the few cultural goods that we carry with us every day and have a role in our daily life, so the way trends are created and transmitted is affected both by changes in the diffusion of culture –as it happened with cultural globalization- and by changes in society. Secondly, fashion industry has, as every other, been affected by economic globalization. However, unlike any other industry, fashion produces ephemeral cultural goods, and so the production of clothes has also been affected by the new model of transmission of trends with cultural globalization.
1. Karl Marx published The Capital, which analyzed the laws governing capitalist economic systems and caused a revolution in economic thinking. It detailed Marx's investigation into the laws governing economic activity.
2. Marx argued that the driving force of capitalism is surplus value, or the unpaid value of workers' labor, which capitalists extract through various means. The total value of commodities is composed of constant capital, variable capital, and surplus value.
3. Various economic schools developed over time to analyze and critique capitalism, including classical economics, marginalism, Keynesianism, monetarism, and world-systems theory. Different countries adopted elements of these schools in their economic planning and development strategies.
Joseph Schumpeter coined the term "creative destruction" to describe how capitalism drives economic progress through the disruption of existing markets by new innovations. This disruption causes some businesses and jobs to fail while creating new opportunities and markets. Schumpeter argued that attempts to prevent this process would ultimately stall economic growth. The document discusses Schumpeter's concept of creative destruction and its role in business cycles and economic transformation over time. It also summarizes Schumpeter's views on other economists like Adam Smith, Karl Marx, and John Maynard Keynes.
Classical Economics developed between the 18th and 19th centuries as an alternative to Marxism. It viewed the market as self-regulating and believed economic growth was driven by interactions between labor and capital. Important early thinkers included Adam Smith, whose works "The Theory of Moral Sentiments" and "The Wealth of Nations" influenced Classical economics, and David Ricardo, whose "Principles of Political Economy and Taxation" built on Smith's theories.
This document provides an overview of several influential theorists in development economics and sociological/political development theories. It summarizes the key contributions and perspectives of thinkers such as Adam Smith, David Ricardo, Thomas Malthus, Karl Marx, Joseph Schumpeter, and others. It also examines the origins and perspectives of sociological theorists including Auguste Comte, Emile Durkheim, Max Weber, and Talcott Parsons. The document analyzes how their work has shaped the study of development economics and sociology.
This document provides an overview of the history of economic thought, outlining major economists and their ideas from ancient times through contemporary economic theory. It discusses early Greek philosophers like Xenophon and Aristotle and their work on household management. It then covers mercantilism and physiocrats before detailing the classical economists like Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx. The document also summarizes the ideas of neoclassical thinkers, Keynes and the development of macroeconomics, monetarism, and concludes with some modern economists like Thomas Piketty.
William Petty, Richard Cantillon, David Hume, and James Steuart were early contributors to classical political economy in the 17th-18th centuries. Petty developed concepts like surplus, fiscal pressure, and distinguishing actual and natural prices. Cantillon developed a circular flow model and theories on money, demand/supply, profit, and population growth. Hume emphasized empiricism and free trade. Steuart published the first book with "political economy" in the title, representing a more systematic view of moderate mercantilism.
The document provides an overview of key concepts and theories in microeconomics and the history of economic thought, including:
- Definitions of labor force, unemployment, and types of unemployment.
- Classical economic theories from the 18th-19th centuries that emphasized free markets and limited government.
- Contributions of early economists like Adam Smith, Thomas Malthus, David Ricardo, and John Stuart Mill.
- Emergence of neoclassical economics in the late 19th century focusing on market efficiencies.
- John Maynard Keynes' development of Keynesian economics in the 1930s advocating active government intervention to ensure stability and growth.
The document discusses the evolution of management from early industrialization to modern principles and theories of management. It traces the origins of management concepts to the late 18th/early 19th century as a reaction to harsh industrialization. Key developments included scientific management principles by Taylor and Gilbreth focusing on efficiency. Administrative management theories by Fayol, Weber, and Barnard stressed planning, organizing and controlling functional aspects. Total quality management later emerged with a focus on continuous improvement, customer needs and reducing waste.
This document provides an overview of classical economics and the contributions of Adam Smith, Thomas Malthus, and David Ricardo. It discusses Adam Smith's theories on the division of labor, the invisible hand, and the limited role of government. For Malthus, it summarizes his theory that population growth occurs geometrically while food production increases arithmetically, leading to checks on population. For Ricardo, it notes that he was influenced by Smith and Malthus, and discusses his disagreement with Malthus on Say's Law.
Ben Bernanke is an American economist who served as Chairman of the Federal Reserve from 2006 to 2014. He was a professor at Princeton University and chaired the economics department there. Bernanke also served on the Council of Economic Advisers under President George W. Bush before being appointed Fed Chairman. As Chairman, he helped steer the US economy through the late-2000s financial crisis and Great Recession.
The document discusses the key ideas and history of the Austrian School of economics. It makes 3 main points:
1) The Austrian School views economics as understanding how people cooperate and compete to meet needs through private property and free markets, seeing entrepreneurship, private property, and free markets as essential.
2) Important early figures included Carl Menger, Eugen von Böhm-Bawerk, Ludwig von Mises, and F.A. Hayek who developed theories of prices, interest rates, money, business cycles, and the impossibility of economic calculation under socialism.
3) The school experienced periods of prominence and decline but is seeing a revival due to its realistic view of human action and
The document discusses how technology is affecting job creation in the travel and tourism industry. It begins with an overview of technological advances since the Industrial Revolution, noting how certain innovations like steam engines and assembly lines initially disrupted some jobs but also created new ones. The document then examines how the rise of e-business and mobile commerce has eliminated many traditional "middleman" travel agent roles by allowing customers to independently plan and book trips online. However, it also argues that new technology-focused jobs are emerging in the industry to develop innovative online and mobile services and assist customers with using these new tools. In conclusion, while certain jobs are being lost, technology also brings opportunities to create new types of work through creativity and adapting to changing customer demands.
Peter Fleissner: Productive and Unproductive Labour in the Information SocietyJosé Nafría
Ponencia perteneciente al eje temático: "Asideros firmes sobre terrenos endebles en la era de la información global", 14 de septiembre de 2013
Curso internacional de verano: Redes sociales: de la comunicación a la solidaridad en red (un enfoque interdisciplinar), Sierra Pambley, León, Septiembre de 2013
http://primer.unileon.es/eventos/RS2013
Adam Smith and David Ricardo were influential classical economists. Smith proposed that self-interest and free markets, with limited government intervention, allow economies to thrive. His ideas formed the basis of classical economics. Ricardo was inspired by Smith's work and made contributions of his own, such as the theory of comparative advantage in international trade. Both Smith and Ricardo significantly shaped early economic thought through their works.
Karl Marx, Friedrich Engels, Milton Friedman, and Paul Samuelson were famous economists.
Marx and Engels developed Marxist theory together, with Marx publishing influential works like The Communist Manifesto and Das Kapital. Engels published The Condition of the Working Class in England and collaborated with Marx.
Friedman represented the Monetarist perspective and reinterpreted the consumption function in the 1950s. He argued against "naive Keynesian" theory.
Samuelson was considered one of the founders of neo-Keynesian economics. He helped develop neoclassical economics and explained Keynesian principles.
Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx were influential classical economists. Adam Smith introduced concepts like the division of labor and free trade. David Ricardo developed the labor theory of value and the theory of rent. Thomas Malthus believed population growth could outpace food supply increases. Karl Marx viewed history through the lens of class struggle and believed capitalism would be overtaken by socialism and communism.
Joseph Schumpeter was a pioneering economist who studied entrepreneurship and innovation. He coined the term "creative destruction" to describe how innovation destroys old technologies and industries while creating new ones. This biography by Thomas McCraw examines Schumpeter's life and influential theories. Schumpeter believed that entrepreneurs who introduce new innovations are crucial drivers of economic growth and keep societies "open" to change. He also emphasized the importance of studying business and economic history, and integrating other disciplines like sociology into economics. Schumpeter's work helped establish entrepreneurship as a key area of study and made the case for capitalism's role in fostering innovation.
The document discusses several key concepts in classical economics:
1. Classical economics included a value theory and distribution theory where the value of a product depended on production costs. Distribution of income was explained by costs of production.
2. Under classical economics, a landlord received rent, workers received wages, and capitalist tenants received profits from their investments.
3. Adam Smith was a prominent figure in classical economics and argued that labor is the source of a country's wealth and wealth increases through division of labor and free competition.
4. Physiocrats believed that agriculture was the sole source of wealth for a nation. Rent, wages, and profits were seen as distributions of the agricultural surplus.
Industrial geography is the study of manufacturing industries and how they are influenced by and influence geographic factors like location. There are several approaches to studying industrial geography, including behavioral, Marxist, radical, capitalist, and industrial location approaches. Some major factors that influence industrial location are availability of raw materials, access to markets, available labor supply, transportation infrastructure, water and energy resources, and government policies. In Bangladesh, some of the most important factors shaping industrialization are abundant low-cost labor supply, access to raw materials like tea plants, transportation via roads, rivers and rail, and availability of water and energy resources like hydroelectric power from rivers.
The History of Technological Anxiety and the Future of Economic Growth: Is Th...Roberto Reale
Technological progress has historically caused anxiety over its disruptive effects on labor markets and the nature of work. This document analyzes anxieties during the Industrial Revolution and Great Depression. While short-term disruption like job displacement occurred, long-term benefits included increased productivity and new industries. Recent technological revolutions risk automating cognitive skills, again disrupting labor markets. However, economic principles and policies may help smooth transitions, and past predictions of technology ending work have been overstated. The future effects of AI remain uncertain but international cooperation and government support could help address challenges.
This document summarizes a paper about earthquake risk to industry in Istanbul, Turkey. It discusses:
1) Istanbul contains 40% of Turkey's industrial facilities and 30% of its industrial workforce, making industrial earthquake risk management important.
2) A 1999 earthquake in Kocaeli caused $1.5-3.5 billion in insured losses to industry, showing Istanbul's industrial areas would likely face major damage and losses from a large quake.
3) The paper presents an inventory of Istanbul's industrial sectors and facilities to assess potential earthquake impacts and losses to inform better risk management and mitigation.
The document discusses Karl Marx's labor theory of value and the concept of surplus value. It explains that necessary labor refers to the labor used to produce goods for workers' subsistence, while surplus labor produces a social surplus product appropriated by the ruling class. Surplus value is the monetary form of this surplus product and represents uncompensated labor extracted by capitalists. The labor theory of value asserts that the exchange value of a commodity is determined by the labor time required to produce it. The document then discusses how stagnation in productive sectors led to the growth of financialization as a way for surplus capital to accumulate.
Learn what are the branches of economicscalltutors
Call Tutors is a one stop destination for all students who are looking for expert help in their Homework & Assignments, Programming, research papers, Business Plan & Presentations & more.
This document provides an overview of several post-industrial economic theories including capitalism, socialism, and communism. It discusses key ideas and thinkers for each system. For capitalism, it outlines private industry ownership, competition, and inequality as key ideas and examines Adam Smith's invisible hand theory and laissez-faire economics. For socialism, it discusses government industry ownership, equality, and a classless society as key ideas and looks at the utopian socialist views of Saint-Simon and Robert Owen. For communism, it presents public industry ownership, a classless society without government, and Karl Marx's belief that communism is the highest stage of socialism.
Un león dormía en la selva cuando un ratón pasó corriendo y despertó al león. El león se enfadó y atrapó al ratón, pero luego lo dejó ir cuando el ratón le rogó que lo soltara prometiendo que algún día le devolvería el favor. Más tarde, unos cazadores atraparon al león con una red, y el pequeño ratón oyó sus rugidos de auxilio, fue a ayudarlo y logró roer la red para liberar al león.
The document provides an overview of key concepts and theories in microeconomics and the history of economic thought, including:
- Definitions of labor force, unemployment, and types of unemployment.
- Classical economic theories from the 18th-19th centuries that emphasized free markets and limited government.
- Contributions of early economists like Adam Smith, Thomas Malthus, David Ricardo, and John Stuart Mill.
- Emergence of neoclassical economics in the late 19th century focusing on market efficiencies.
- John Maynard Keynes' development of Keynesian economics in the 1930s advocating active government intervention to ensure stability and growth.
The document discusses the evolution of management from early industrialization to modern principles and theories of management. It traces the origins of management concepts to the late 18th/early 19th century as a reaction to harsh industrialization. Key developments included scientific management principles by Taylor and Gilbreth focusing on efficiency. Administrative management theories by Fayol, Weber, and Barnard stressed planning, organizing and controlling functional aspects. Total quality management later emerged with a focus on continuous improvement, customer needs and reducing waste.
This document provides an overview of classical economics and the contributions of Adam Smith, Thomas Malthus, and David Ricardo. It discusses Adam Smith's theories on the division of labor, the invisible hand, and the limited role of government. For Malthus, it summarizes his theory that population growth occurs geometrically while food production increases arithmetically, leading to checks on population. For Ricardo, it notes that he was influenced by Smith and Malthus, and discusses his disagreement with Malthus on Say's Law.
Ben Bernanke is an American economist who served as Chairman of the Federal Reserve from 2006 to 2014. He was a professor at Princeton University and chaired the economics department there. Bernanke also served on the Council of Economic Advisers under President George W. Bush before being appointed Fed Chairman. As Chairman, he helped steer the US economy through the late-2000s financial crisis and Great Recession.
The document discusses the key ideas and history of the Austrian School of economics. It makes 3 main points:
1) The Austrian School views economics as understanding how people cooperate and compete to meet needs through private property and free markets, seeing entrepreneurship, private property, and free markets as essential.
2) Important early figures included Carl Menger, Eugen von Böhm-Bawerk, Ludwig von Mises, and F.A. Hayek who developed theories of prices, interest rates, money, business cycles, and the impossibility of economic calculation under socialism.
3) The school experienced periods of prominence and decline but is seeing a revival due to its realistic view of human action and
The document discusses how technology is affecting job creation in the travel and tourism industry. It begins with an overview of technological advances since the Industrial Revolution, noting how certain innovations like steam engines and assembly lines initially disrupted some jobs but also created new ones. The document then examines how the rise of e-business and mobile commerce has eliminated many traditional "middleman" travel agent roles by allowing customers to independently plan and book trips online. However, it also argues that new technology-focused jobs are emerging in the industry to develop innovative online and mobile services and assist customers with using these new tools. In conclusion, while certain jobs are being lost, technology also brings opportunities to create new types of work through creativity and adapting to changing customer demands.
Peter Fleissner: Productive and Unproductive Labour in the Information SocietyJosé Nafría
Ponencia perteneciente al eje temático: "Asideros firmes sobre terrenos endebles en la era de la información global", 14 de septiembre de 2013
Curso internacional de verano: Redes sociales: de la comunicación a la solidaridad en red (un enfoque interdisciplinar), Sierra Pambley, León, Septiembre de 2013
http://primer.unileon.es/eventos/RS2013
Adam Smith and David Ricardo were influential classical economists. Smith proposed that self-interest and free markets, with limited government intervention, allow economies to thrive. His ideas formed the basis of classical economics. Ricardo was inspired by Smith's work and made contributions of his own, such as the theory of comparative advantage in international trade. Both Smith and Ricardo significantly shaped early economic thought through their works.
Karl Marx, Friedrich Engels, Milton Friedman, and Paul Samuelson were famous economists.
Marx and Engels developed Marxist theory together, with Marx publishing influential works like The Communist Manifesto and Das Kapital. Engels published The Condition of the Working Class in England and collaborated with Marx.
Friedman represented the Monetarist perspective and reinterpreted the consumption function in the 1950s. He argued against "naive Keynesian" theory.
Samuelson was considered one of the founders of neo-Keynesian economics. He helped develop neoclassical economics and explained Keynesian principles.
Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx were influential classical economists. Adam Smith introduced concepts like the division of labor and free trade. David Ricardo developed the labor theory of value and the theory of rent. Thomas Malthus believed population growth could outpace food supply increases. Karl Marx viewed history through the lens of class struggle and believed capitalism would be overtaken by socialism and communism.
Joseph Schumpeter was a pioneering economist who studied entrepreneurship and innovation. He coined the term "creative destruction" to describe how innovation destroys old technologies and industries while creating new ones. This biography by Thomas McCraw examines Schumpeter's life and influential theories. Schumpeter believed that entrepreneurs who introduce new innovations are crucial drivers of economic growth and keep societies "open" to change. He also emphasized the importance of studying business and economic history, and integrating other disciplines like sociology into economics. Schumpeter's work helped establish entrepreneurship as a key area of study and made the case for capitalism's role in fostering innovation.
The document discusses several key concepts in classical economics:
1. Classical economics included a value theory and distribution theory where the value of a product depended on production costs. Distribution of income was explained by costs of production.
2. Under classical economics, a landlord received rent, workers received wages, and capitalist tenants received profits from their investments.
3. Adam Smith was a prominent figure in classical economics and argued that labor is the source of a country's wealth and wealth increases through division of labor and free competition.
4. Physiocrats believed that agriculture was the sole source of wealth for a nation. Rent, wages, and profits were seen as distributions of the agricultural surplus.
Industrial geography is the study of manufacturing industries and how they are influenced by and influence geographic factors like location. There are several approaches to studying industrial geography, including behavioral, Marxist, radical, capitalist, and industrial location approaches. Some major factors that influence industrial location are availability of raw materials, access to markets, available labor supply, transportation infrastructure, water and energy resources, and government policies. In Bangladesh, some of the most important factors shaping industrialization are abundant low-cost labor supply, access to raw materials like tea plants, transportation via roads, rivers and rail, and availability of water and energy resources like hydroelectric power from rivers.
The History of Technological Anxiety and the Future of Economic Growth: Is Th...Roberto Reale
Technological progress has historically caused anxiety over its disruptive effects on labor markets and the nature of work. This document analyzes anxieties during the Industrial Revolution and Great Depression. While short-term disruption like job displacement occurred, long-term benefits included increased productivity and new industries. Recent technological revolutions risk automating cognitive skills, again disrupting labor markets. However, economic principles and policies may help smooth transitions, and past predictions of technology ending work have been overstated. The future effects of AI remain uncertain but international cooperation and government support could help address challenges.
This document summarizes a paper about earthquake risk to industry in Istanbul, Turkey. It discusses:
1) Istanbul contains 40% of Turkey's industrial facilities and 30% of its industrial workforce, making industrial earthquake risk management important.
2) A 1999 earthquake in Kocaeli caused $1.5-3.5 billion in insured losses to industry, showing Istanbul's industrial areas would likely face major damage and losses from a large quake.
3) The paper presents an inventory of Istanbul's industrial sectors and facilities to assess potential earthquake impacts and losses to inform better risk management and mitigation.
The document discusses Karl Marx's labor theory of value and the concept of surplus value. It explains that necessary labor refers to the labor used to produce goods for workers' subsistence, while surplus labor produces a social surplus product appropriated by the ruling class. Surplus value is the monetary form of this surplus product and represents uncompensated labor extracted by capitalists. The labor theory of value asserts that the exchange value of a commodity is determined by the labor time required to produce it. The document then discusses how stagnation in productive sectors led to the growth of financialization as a way for surplus capital to accumulate.
Learn what are the branches of economicscalltutors
Call Tutors is a one stop destination for all students who are looking for expert help in their Homework & Assignments, Programming, research papers, Business Plan & Presentations & more.
This document provides an overview of several post-industrial economic theories including capitalism, socialism, and communism. It discusses key ideas and thinkers for each system. For capitalism, it outlines private industry ownership, competition, and inequality as key ideas and examines Adam Smith's invisible hand theory and laissez-faire economics. For socialism, it discusses government industry ownership, equality, and a classless society as key ideas and looks at the utopian socialist views of Saint-Simon and Robert Owen. For communism, it presents public industry ownership, a classless society without government, and Karl Marx's belief that communism is the highest stage of socialism.
Un león dormía en la selva cuando un ratón pasó corriendo y despertó al león. El león se enfadó y atrapó al ratón, pero luego lo dejó ir cuando el ratón le rogó que lo soltara prometiendo que algún día le devolvería el favor. Más tarde, unos cazadores atraparon al león con una red, y el pequeño ratón oyó sus rugidos de auxilio, fue a ayudarlo y logró roer la red para liberar al león.
The document summarizes the author's experience using the Apple Watch over one week. It discusses wearing the watch, using it to monitor health, voice commands, battery life needing a daily charge, issues with small screen size like mistapping apps. While the design is good and health features convenient, the summary concludes the watch is difficult to use as an actual timepiece due to slow response, visibility issues outdoors, and troublesome aspects requiring a daily charge.
Este mapa conceptual resume la responsabilidad social empresarial (RSE), que implica que las empresas minimicen los impactos negativos ambientales, sociales y económicos que causan y creen impactos positivos como inversión en desarrollo, educación y reciclaje para beneficiar a clientes, empleados, accionistas y la comunidad. La RSE también involucra la ética empresarial y la responsabilidad organizacional, social y ocupacional.
El documento resume la prehistoria y la antigüedad en la península ibérica. Describe los primeros homínidos como el Homo antecessor de hace 780.000 años, la llegada de neandertales y Homo sapiens en el Paleolítico, y las culturas de la Edad del Hierro como íberos, celtíberos y tartessos que se mezclaron con fenicios, griegos y cartagineses. Luego detalla la conquista romana desde el 218 a.C., la romanización y las tres provincias establecidas, y
Greetings,
Attached FYI ( NewBase Special 25 January 2016 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• Saudi Aramco chairman says IPO could be open to international markets
• GCC: Is a wave of privatisation about to sweep the GCC?
• Qatar: GE Oil & Gas, Qafco in gas turbines’ maintenance deal
• Egypt: revives manufacturing for wind turbine plans
• Norway Holds Talks on Economic Cost of Oil's Plunge ‘No Crisis’
• Japan Oil Imports Fall to Lowest Since 1988 as Demand Drops
• Crude extends gains after surge on short-covering, cold spell
• Slow return of Iranian oil to global market seen
• Oil ‘a blessing and curse for Russia’s economy’
• Global solar PV installations to reach 321 gigawatts by end-2016
we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
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Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
Siddaram Hebbal successfully completed the "Developing on AWS" course on 5/18/2014. The certificate of completion from AWS Training recognizes Siddaram Hebbal's participation in the course. The director of AWS Training and Certification signed the certificate on the date of completion.
Christopher Farnaby is an experienced Planner/Scheduler with over nine years of experience as a Planning Manager. He is conversant in several scheduling software systems and Microsoft Office applications. Farnaby is responsible for planning labor, materials, and subcontractors to achieve customer deadlines and monitor delivery performance and key performance indicators. He communicates effectively with senior management, customers, subcontractors, and manufacturing staff.
Este documento contiene 35 pensamientos para ayudar a las personas a enfrentar tiempos difíciles de manera positiva. Algunos de los pensamientos clave incluyen: no dejar que el fracaso llegue al corazón y enfrentar los problemas en lugar de negarlos; rodearse de personas positivas que te levanten en lugar de arrastrarte hacia abajo; y no dejar que el miedo te detenga de perseguir tus sueños o cometer errores en pos de aprender lecciones importantes. El mensaje general es mantener una actitud positiva a
Valerian Sergeevich Sokolov was born on November 23, 1947 in Shikhobylovo, Russia and started boxing in 1963. He trained at Dynamo in Cheboksary and was unknown until winning the gold medal in the bantamweight division at the 1968 Summer Olympics in Mexico City. After retiring from boxing in 1975, Sokolov graduated from the Leningrad Military Institute of Physical Culture and later coached the Soviet national boxing team from 1981 to 1986 before taking leadership roles in Russian boxing organizations.
Este documento describe las causas de extinción de la responsabilidad penal como la amnistía y el indulto. La amnistía es un acto del poder legislativo que extingue la acción penal y todas las consecuencias de un delito. El indulto es un acto del poder ejecutivo que perdona el cumplimiento de la pena pero mantiene la culpabilidad. Otras causas de exclusión de la pena incluyen el estado de necesidad y el perdón del ofendido en delitos de acción privada.
The Invention of Capitalism - Michael Perelmanberat celik
The Invention of Capitalism is novel in four major respects. First, it
addresses the question of what determines the social division of labor, the
division of society into independent firms and industries from the per-
spective of classical political economy. It also develops the theoretical
implications of primitive accumulation. Third, this book offers a signifi-
cantly different interpretation of classical political economy, demonstrat-
ing that this school of thought supported the process of primitive ac-
cumulation. Finally, it analyzes the role of primitive accumulation in the
work of Marx. All of these threads come together in helping us to under-
stand how modern capitalism developed and the role of classical political
economy in furthering this process.
Rajesh G.K. & Swati M. | Francisco Louça
21 Jan, 2:00 pm – 3:00 pm GMT
ZOOM online
LECTURE -3: ORIGINS OF INNOVATION SYSTEMS
by
Dr. Rajesh G.K. Gandhigram University, India
&
Dr. Swati Mehta, Guru Nanak Dev University, India.
CHAIR:
Professor Francisco Louça, ISEG University of Lisbon
+240 more
Lessons from industrial revolution presented by sajjad haider 2016Sajjad Haider
The Information Technology Revolution
Chapter One in
The Rise of the Network Society: The Information Age: Economy, Society, and Culture
By
Manuel Castells
Topic: Lessons fro the Industrial Revolution
Presentation by:
Sajjad Haider
Department of Anthropology
Quaid-i-Azam University, Islamabad, Pakistan
Facebook.com/Anthropologyqau
Slideshare.net/sajjadhaider786
Twitter.com/@streetpainter
#UrgingPeopleToExcel2016
Lectures and sessions on this topic can be booked through email: sajjadhaider786@gmail.com
As part of my mission of “Urging People To Excel”, I have made this presentation public. It may be used for academic excellence.
Please promote #UrgingPeopleToExcel to #motivate , #mobilize and #mentor the people around you.
Sajjad Haider
FounderUPTE
Unit 1 to 3 and 5_merged_watermarked.pdfBipictures
This document provides an overview of the course "Issues in Twentieth Century World History-I" which covers several units:
- Unit I introduces concepts defining the 20th century such as capitalist industrialization, modernity, and imperialism. It discusses the historical roots and stages of capitalist development.
- Unit II examines the causes and consequences of World War I in Europe and globally.
- Unit III analyzes the origins and impact of the 1917 Russian Revolution in Russia and worldwide.
- Unit V discusses changing cultural scenarios in the context of modernity.
The course is edited by Nalini Taneja and Prabhat Kumar from the School of Open Learning at the University of Delhi.
This document provides an overview of classical macroeconomic theory. It discusses how classical economics emerged as a revolution against mercantilism, emphasizing real factors over money and stressing free market mechanisms. Key aspects of classical theory included: (1) stressing real over monetary factors in determining output and employment, with money playing a limited role as a medium of exchange; and (2) believing self-adjusting market forces ensured adequate demand for output, making government intervention unnecessary. The document outlines classical economists' aggregate production function model, which related output to capital and labor inputs based on technology.
Most Influential Turning Points During The Second...Sandra Acirbal
The document discusses the Second Industrial Revolution and its impact on various aspects of society. It began in the late 19th century, characterized by new technologies like steel, electricity, and the internal combustion engine. This led to rapid industrialization and urbanization as populations moved to cities. Working conditions in factories were often poor, with long hours, low pay, and few protections for workers. The rise of big business also concentrated economic power in the hands of monopolies. Overall, the Second Industrial Revolution transformed the US economy and society through industrialization and new technologies while also creating conflicts over labor issues.
This document provides a summary of Adam Smith and key concepts from his work, including:
- The Industrial Revolution led to increased factory production and specialization of labor.
- Smith introduced the concept of the "invisible hand" to describe how free markets reach equilibrium through individuals pursuing self-interest.
- He analyzed the division of labor and believed it increased productivity but could lead to negative effects like monotony.
- While self-interest drives markets, Smith believed morality and ethics were also important to a well-functioning society.
Schumpeter's theory of business cycles analyzes recurring periods of economic boom and bust that define capitalism. He argues that innovation, primarily driven by entrepreneurs, is the main catalyst of economic change and growth. Innovations take many forms, from new products to new ways of organizing firms and markets. While innovation provides profits for entrepreneurs, it also creates disruption as existing firms and social arrangements are challenged. This process of "creative destruction" is an endless cycle that powers capitalism but faces resistance from entrenched interests. For capitalism to survive long-term, constant internal change through innovation is necessary despite its destabilizing effects.
The document provides an overview of the history and evolution of industrial companies from the Industrial Revolution to modern times. It discusses key topics such as:
- The origins and spread of the Industrial Revolution from England to other countries in Europe and the United States in the late 19th century.
- Factors that enabled England's leadership in the Industrial Revolution, including intellectual openness, entrepreneurship, efficient banking, and the invention of the steam engine.
- How companies and management have changed over time, from early pioneers like Edison and Ford to different employee relationships and technologies transforming industries.
- New challenges of globalization and sustainable development as population grows and resources become constrained in the 21st century.
New promotional products like portfolios, pens, gifts, and memo pads are now available. Proto-industry involved manufacturing goods for trade, dominated by guilds offering support. The industrial revolution led to large-scale factories using steam power, later electricity, and mechanized assembly lines to mass produce goods efficiently. Some industries have declined due to new technologies or lost competitive advantages, and manufacturing has shifted to cheaper locations through offshoring.
New promotional products like portfolios, pens, gifts, and memo pads are now available. Proto-industry involved manufacturing goods for trade, dominated by guilds offering support. The industrial revolution led to large-scale factories using steam power, later electricity, and mechanized assembly lines to mass produce goods efficiently. Some industries have declined due to new technologies or lost advantages, and manufacturing has shifted to cheaper locations through offshoring.
New promotional products like portfolios, pens, gifts, and memo pads are now available. Proto-industry involved manufacturing goods for trade, dominated by guilds offering support. The industrial revolution led to large-scale factories using steam power, later electricity, and mechanized assembly lines to mass produce goods efficiently. Some industries have declined due to new technologies or lost competitive advantages, and manufacturing has shifted to cheaper locations through offshoring.
New promotional products like portfolios, pens, gifts, and memo pads are now available. Proto-industry involved manufacturing goods for trade, dominated by guilds offering support. The industrial revolution led to large-scale factories using steam power, later electricity, and mechanized assembly lines to mass produce goods efficiently. Some industries have declined due to new technologies or lost competitive advantages, and manufacturing has shifted to cheaper locations through offshoring.
His 102 chapter 23 economics and culture - modern industry & mass politics, 1...dcyw1112
Modern industry and mass politics from 1870-1914 saw radical changes across Europe. New technologies like steel, electricity, and chemicals fueled second industrial revolution and changes in scope and scale of industry. This led to rise of large corporations, consumerism, and mass culture. Workers organized into unions and socialist parties to demand better conditions. Women activists fought for suffrage and redefinition of gender roles. Meanwhile, liberalism faced challenges from these new mass political forces and right-wing nationalist movements gained traction by appealing to anti-Semitism.
1. The document discusses technological and organizational change in the Italian cotton textile industry from the 1970s-1980s.
2. During this time, the industry underwent a process of modernization in response to increased global competition and changes in consumer demand, adopting new technologies like shuttleless looms and open-end spinning.
3. The typical structure of specialized, family-owned small firms in Italy was functional for implementing early technological changes but risks delaying adoption of more complex new information technologies requiring deeper organizational changes.
Describe two benefits of the industrial revolution and two proble.pdfshalins6
Describe two benefits of the industrial revolution and two problems it caused. Make sure that
your answer is not focused only on the early years of the industrial
revolution. Why do you think industrial reform came so slowly between 1815 and 1914?
Solution
Benefits:
1)As the scale of production of goods increased under the capitalist model, people from all
sections of society were able to enjoy consumption of products that were previously considered
an luxury for the few.
the city of Manchester, the numerous cotton mills set up there produced sufficient goods to
supply to the local markets and also export the surplus to other countries.Along with this, the
industrial revolution brought the concept of the overall efficiency of the production process.
Terms such as efficiency and quality were given emphasis, the benefits of which are transferred
to the end consumer.
2)Transportation and technology - the expansion of business and factories expanded our
transportation network out of necessity and brought us canals, highways and turnpikes. It better
connected us together as a society. We also saw technological innovation like interchangeable
parts (Eli Whitney) and the textile mill (Samuel Slater) which revolutionized how we lived.
Problems:
1) Factories that produce goods on a massive scale are the most prominent symbols of the
industrial revolution. Such a radical transformation was allowed to happen because it suited the
interests of the aristocracy and nobility of the time. The ruling elite of England were also the
owners of most the country’s wealth and it suited their interest to perpetuate a method that
maintained status quo. This meant that the prevailing inequities in distribution of wealth
accentuated further as the industrial revolution marched on. Some intellectuals have cited this as
the major problem with the capitalist model and have hence condemned the revolution as
socially unjust.
2)The other criticism that is leveled against large-scale industries is their tendency to accelerate
the process of urbanization and ultimately contribute to pollution and squalor. For example, the
issues of overpopulation, petty crime, prostitution and pollution in the industrial city of
Manchester are well documented by Kishlansky and other scholars.
Why do you think industrial reform came so slowly between 1815 and 1914?
there is an interesting reason why the industrial reforms process was sluggish during the
nineteenth century. One of the main reasons for this slowing down is the sprouting up of a new
class of people called the bourgeoisie. In the feudal system that preceded the capitalist system,
there were only two classes – the landowning class and the peasantry. But with the onset of the
industrial revolution, a whole new social class was created, which made the capitalists feel
insecure and vulnerable. Hence one could see during the period of the nineteenth century, an
attempt by the capitalists to retain their power and influence over the rest.
This document discusses technological innovation and its impacts on employment. It provides context on globalization trends, industrial reorganization, and different models of production. It then examines Portugal's situation, including achievements and barriers to technological progress. Key policies and initiatives to promote innovation in Portugal are also summarized, from research to education. The social effects of technology on both the macro level and within organizations are then explored.
THE CAUSES OF CHAOS IN THE WORLD ECONOMY AND HOW TO ELIMINATE THEM.pdfFaga1939
This article aims to present the causes of the chaos that has prevailed in the world economy for centuries and how to eliminate them. These causes are explained by the absence of feedback and control mechanisms in the world capitalist system that would allow mitigating the harmful consequences generated by long waves or long economic cycles of the world economy presented by Russian economist Nikolai Dimitrievitch Kondratieff who shows how the world capitalist system has evolved with cycles that go from prosperity to economic decline from 1780 to 2010, as well as mitigating the harmful consequences generated by waves of innovation presented by Austrian economist Joseph Schumpeter who shows how technological innovations introduced into production processes in each Kondratieff cycle are responsible for the expansion and decline of the world capitalist economy. To deal with the cyclical crises of capitalism and put an end to global economic chaos, as well as ensuring that technological advancement does not cease and contributes to the progress of humanity, the only solutions for stabilizing the global economy are the adoption of Keynesianism in each country and globally and the existence of a world government.
The Industrial Revolution began in Great Britain and spread across Europe, transforming economies from agriculture-based to industrialized. New technologies like the steam engine powered factories where workers labored under difficult conditions. This led to the rise of organized labor movements seeking better treatment. Art styles also changed to reflect industrial and working class themes, like Realism highlighting everyday lives. Overall, the period marked massive social, economic and technological changes in Europe.
Similarities Between Karl Marx And Adam SmithDiana Oliva
The document discusses the economic changes that occurred during the Industrial Revolution in three main areas:
1. The transition from hand production to machine production led to new manufacturing processes between 1760-1840. Textiles were the first industry to use modern production methods.
2. Life was difficult for workers, who faced long hours, low wages, and dangerous working conditions in factories. This created demand for workers' rights and safer workplaces.
3. New inventions and machinery increased productivity and production volume, which benefited businesses and the economy but also disrupted existing industries and jobs. Overall, the Industrial Revolution marked a major economic shift through industrialization.
"Scaling RAG Applications to serve millions of users", Kevin GoedeckeFwdays
How we managed to grow and scale a RAG application from zero to thousands of users in 7 months. Lessons from technical challenges around managing high load for LLMs, RAGs and Vector databases.
Conversational agents, or chatbots, are increasingly used to access all sorts of services using natural language. While open-domain chatbots - like ChatGPT - can converse on any topic, task-oriented chatbots - the focus of this paper - are designed for specific tasks, like booking a flight, obtaining customer support, or setting an appointment. Like any other software, task-oriented chatbots need to be properly tested, usually by defining and executing test scenarios (i.e., sequences of user-chatbot interactions). However, there is currently a lack of methods to quantify the completeness and strength of such test scenarios, which can lead to low-quality tests, and hence to buggy chatbots.
To fill this gap, we propose adapting mutation testing (MuT) for task-oriented chatbots. To this end, we introduce a set of mutation operators that emulate faults in chatbot designs, an architecture that enables MuT on chatbots built using heterogeneous technologies, and a practical realisation as an Eclipse plugin. Moreover, we evaluate the applicability, effectiveness and efficiency of our approach on open-source chatbots, with promising results.
High performance Serverless Java on AWS- GoTo Amsterdam 2024Vadym Kazulkin
Java is for many years one of the most popular programming languages, but it used to have hard times in the Serverless community. Java is known for its high cold start times and high memory footprint, comparing to other programming languages like Node.js and Python. In this talk I'll look at the general best practices and techniques we can use to decrease memory consumption, cold start times for Java Serverless development on AWS including GraalVM (Native Image) and AWS own offering SnapStart based on Firecracker microVM snapshot and restore and CRaC (Coordinated Restore at Checkpoint) runtime hooks. I'll also provide a lot of benchmarking on Lambda functions trying out various deployment package sizes, Lambda memory settings, Java compilation options and HTTP (a)synchronous clients and measure their impact on cold and warm start times.
5th LF Energy Power Grid Model Meet-up SlidesDanBrown980551
5th Power Grid Model Meet-up
It is with great pleasure that we extend to you an invitation to the 5th Power Grid Model Meet-up, scheduled for 6th June 2024. This event will adopt a hybrid format, allowing participants to join us either through an online Mircosoft Teams session or in person at TU/e located at Den Dolech 2, Eindhoven, Netherlands. The meet-up will be hosted by Eindhoven University of Technology (TU/e), a research university specializing in engineering science & technology.
Power Grid Model
The global energy transition is placing new and unprecedented demands on Distribution System Operators (DSOs). Alongside upgrades to grid capacity, processes such as digitization, capacity optimization, and congestion management are becoming vital for delivering reliable services.
Power Grid Model is an open source project from Linux Foundation Energy and provides a calculation engine that is increasingly essential for DSOs. It offers a standards-based foundation enabling real-time power systems analysis, simulations of electrical power grids, and sophisticated what-if analysis. In addition, it enables in-depth studies and analysis of the electrical power grid’s behavior and performance. This comprehensive model incorporates essential factors such as power generation capacity, electrical losses, voltage levels, power flows, and system stability.
Power Grid Model is currently being applied in a wide variety of use cases, including grid planning, expansion, reliability, and congestion studies. It can also help in analyzing the impact of renewable energy integration, assessing the effects of disturbances or faults, and developing strategies for grid control and optimization.
What to expect
For the upcoming meetup we are organizing, we have an exciting lineup of activities planned:
-Insightful presentations covering two practical applications of the Power Grid Model.
-An update on the latest advancements in Power Grid -Model technology during the first and second quarters of 2024.
-An interactive brainstorming session to discuss and propose new feature requests.
-An opportunity to connect with fellow Power Grid Model enthusiasts and users.
The Microsoft 365 Migration Tutorial For Beginner.pptxoperationspcvita
This presentation will help you understand the power of Microsoft 365. However, we have mentioned every productivity app included in Office 365. Additionally, we have suggested the migration situation related to Office 365 and how we can help you.
You can also read: https://www.systoolsgroup.com/updates/office-365-tenant-to-tenant-migration-step-by-step-complete-guide/
How information systems are built or acquired puts information, which is what they should be about, in a secondary place. Our language adapted accordingly, and we no longer talk about information systems but applications. Applications evolved in a way to break data into diverse fragments, tightly coupled with applications and expensive to integrate. The result is technical debt, which is re-paid by taking even bigger "loans", resulting in an ever-increasing technical debt. Software engineering and procurement practices work in sync with market forces to maintain this trend. This talk demonstrates how natural this situation is. The question is: can something be done to reverse the trend?
Skybuffer SAM4U tool for SAP license adoptionTatiana Kojar
Manage and optimize your license adoption and consumption with SAM4U, an SAP free customer software asset management tool.
SAM4U, an SAP complimentary software asset management tool for customers, delivers a detailed and well-structured overview of license inventory and usage with a user-friendly interface. We offer a hosted, cost-effective, and performance-optimized SAM4U setup in the Skybuffer Cloud environment. You retain ownership of the system and data, while we manage the ABAP 7.58 infrastructure, ensuring fixed Total Cost of Ownership (TCO) and exceptional services through the SAP Fiori interface.
zkStudyClub - LatticeFold: A Lattice-based Folding Scheme and its Application...Alex Pruden
Folding is a recent technique for building efficient recursive SNARKs. Several elegant folding protocols have been proposed, such as Nova, Supernova, Hypernova, Protostar, and others. However, all of them rely on an additively homomorphic commitment scheme based on discrete log, and are therefore not post-quantum secure. In this work we present LatticeFold, the first lattice-based folding protocol based on the Module SIS problem. This folding protocol naturally leads to an efficient recursive lattice-based SNARK and an efficient PCD scheme. LatticeFold supports folding low-degree relations, such as R1CS, as well as high-degree relations, such as CCS. The key challenge is to construct a secure folding protocol that works with the Ajtai commitment scheme. The difficulty, is ensuring that extracted witnesses are low norm through many rounds of folding. We present a novel technique using the sumcheck protocol to ensure that extracted witnesses are always low norm no matter how many rounds of folding are used. Our evaluation of the final proof system suggests that it is as performant as Hypernova, while providing post-quantum security.
Paper Link: https://eprint.iacr.org/2024/257
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
LF Energy Webinar: Carbon Data Specifications: Mechanisms to Improve Data Acc...DanBrown980551
This LF Energy webinar took place June 20, 2024. It featured:
-Alex Thornton, LF Energy
-Hallie Cramer, Google
-Daniel Roesler, UtilityAPI
-Henry Richardson, WattTime
In response to the urgency and scale required to effectively address climate change, open source solutions offer significant potential for driving innovation and progress. Currently, there is a growing demand for standardization and interoperability in energy data and modeling. Open source standards and specifications within the energy sector can also alleviate challenges associated with data fragmentation, transparency, and accessibility. At the same time, it is crucial to consider privacy and security concerns throughout the development of open source platforms.
This webinar will delve into the motivations behind establishing LF Energy’s Carbon Data Specification Consortium. It will provide an overview of the draft specifications and the ongoing progress made by the respective working groups.
Three primary specifications will be discussed:
-Discovery and client registration, emphasizing transparent processes and secure and private access
-Customer data, centering around customer tariffs, bills, energy usage, and full consumption disclosure
-Power systems data, focusing on grid data, inclusive of transmission and distribution networks, generation, intergrid power flows, and market settlement data
Freshworks Rethinks NoSQL for Rapid Scaling & Cost-EfficiencyScyllaDB
Freshworks creates AI-boosted business software that helps employees work more efficiently and effectively. Managing data across multiple RDBMS and NoSQL databases was already a challenge at their current scale. To prepare for 10X growth, they knew it was time to rethink their database strategy. Learn how they architected a solution that would simplify scaling while keeping costs under control.
AppSec PNW: Android and iOS Application Security with MobSFAjin Abraham
Mobile Security Framework - MobSF is a free and open source automated mobile application security testing environment designed to help security engineers, researchers, developers, and penetration testers to identify security vulnerabilities, malicious behaviours and privacy concerns in mobile applications using static and dynamic analysis. It supports all the popular mobile application binaries and source code formats built for Android and iOS devices. In addition to automated security assessment, it also offers an interactive testing environment to build and execute scenario based test/fuzz cases against the application.
This talk covers:
Using MobSF for static analysis of mobile applications.
Interactive dynamic security assessment of Android and iOS applications.
Solving Mobile app CTF challenges.
Reverse engineering and runtime analysis of Mobile malware.
How to shift left and integrate MobSF/mobsfscan SAST and DAST in your build pipeline.
Dandelion Hashtable: beyond billion requests per second on a commodity serverAntonios Katsarakis
This slide deck presents DLHT, a concurrent in-memory hashtable. Despite efforts to optimize hashtables, that go as far as sacrificing core functionality, state-of-the-art designs still incur multiple memory accesses per request and block request processing in three cases. First, most hashtables block while waiting for data to be retrieved from memory. Second, open-addressing designs, which represent the current state-of-the-art, either cannot free index slots on deletes or must block all requests to do so. Third, index resizes block every request until all objects are copied to the new index. Defying folklore wisdom, DLHT forgoes open-addressing and adopts a fully-featured and memory-aware closed-addressing design based on bounded cache-line-chaining. This design offers lock-free index operations and deletes that free slots instantly, (2) completes most requests with a single memory access, (3) utilizes software prefetching to hide memory latencies, and (4) employs a novel non-blocking and parallel resizing. In a commodity server and a memory-resident workload, DLHT surpasses 1.6B requests per second and provides 3.5x (12x) the throughput of the state-of-the-art closed-addressing (open-addressing) resizable hashtable on Gets (Deletes).
Taking AI to the Next Level in Manufacturing.pdfssuserfac0301
Read Taking AI to the Next Level in Manufacturing to gain insights on AI adoption in the manufacturing industry, such as:
1. How quickly AI is being implemented in manufacturing.
2. Which barriers stand in the way of AI adoption.
3. How data quality and governance form the backbone of AI.
4. Organizational processes and structures that may inhibit effective AI adoption.
6. Ideas and approaches to help build your organization's AI strategy.
"Choosing proper type of scaling", Olena SyrotaFwdays
Imagine an IoT processing system that is already quite mature and production-ready and for which client coverage is growing and scaling and performance aspects are life and death questions. The system has Redis, MongoDB, and stream processing based on ksqldb. In this talk, firstly, we will analyze scaling approaches and then select the proper ones for our system.
Discover top-tier mobile app development services, offering innovative solutions for iOS and Android. Enhance your business with custom, user-friendly mobile applications.
"Frontline Battles with DDoS: Best practices and Lessons Learned", Igor IvaniukFwdays
At this talk we will discuss DDoS protection tools and best practices, discuss network architectures and what AWS has to offer. Also, we will look into one of the largest DDoS attacks on Ukrainian infrastructure that happened in February 2022. We'll see, what techniques helped to keep the web resources available for Ukrainians and how AWS improved DDoS protection for all customers based on Ukraine experience
"Frontline Battles with DDoS: Best practices and Lessons Learned", Igor Ivaniuk
Paper meacci
1. UNIVERSITÀ DEGLI STUDI DI PADOVA
FACOLTÀ DI SCIENZE POLITICHE
Corso di Laurea Magistrale in
ECONOMIA INTERNAZIONAE
Curriculum: ECONOMIA POLITICA INTERNAZIONALE
TECHNICAL PROGRESS INCORPORATED AND
REPLACEMENT OF CAPITAL TO LABOUR
Lucato Desirè
A.A. 2010/2011
2. INDEX
INTRODUCTION……………………………………………………………………………………2
CHAPTER 1
ECONOMIC PROGRESS AND EMPLOYMENT: SUMMERY OF THEORETICAL
COBTRIBUTION FROM THE MERCANTILISTS TO SOLOW MODEL
1.1
The mercantilists……………………………………………………………………………...3
1.2
The thought of the classical economist: Smith, Ricardo and Marx…………………………..3
1.2.1 Adam Smith…………………………………………………………………………………..4
1.2.2 David Ricardo………………………………………………………………………………...5
1.2.3 Karl Marx……………………………………………………………………………………..6
1.3
The thought of Keynesian economist and the Solow’s neoclassical model of growth………7
CHAPTER 2
THE TECHINICAL PROGRESS INCORPORATED: A TECHINCAL RAPPRESENTATION …8
1.1
Definition……………………………………………………………………………………..8
1.2
Replacement of technically obsolete equipment……………………………………………..9
1.3
The apparent substitution of capital for labour……………………………………………...12
CONCLUSIONS …………………………………………………………………………………...15
BIBLIOGRAPHY…………………………………………………………………………………..16
2
3. INTRODUCTION
The theme of the relationship between technological progress and unemployment in a growing
economy has been treated by the major classical economists like Smith, Ricardo and Marx and then
again, after the long period that has seen historic precedence marginalist thought, by
Schumpeter and, more recently, by growth models Keynesian of Harrod and Domar. The
importance of this subject is not only theoretical if it is true that it ends up crossing with the
controversial issue of "technological unemployment" and the fear, often irrational,
but still widespread, that the machines can eliminate jobs. The neoclassical Solow growth model is
born as a response to the models of Harrod and Domar, where there is evidence that economic
development is unable to grow steadily to the "natural rate" that assures full employment of labour
and technological progress which defines together with the rate of population growth, the
magnitude of this natural rate. The "steady growth" and a low unemployment rate "of Western
economies since the Second World War in the early seventies" has encouraged the consolidation of
the model of stable growth and full employment proposed by Solow at the expense of that of
Harrod. In the model of Solow the focus is on real aspects of the economy, ignoring or at
least implicitly considering only monetary ones. On the other hand, in the seventies the
development of the theory of the natural rate of unemployment has led neoclassical economists to
study unemployment in relation to the monetary aspects of inflation in the first place.
In chapter 1 are reported the salient traits of classical and Keynesian theories, while in chapter 2 we
can see a technical representation of the technological progress incorporated, based on the theories
and on the models reported in chapter 1.
CHAPTER 1
3
4. ECONOMIC PROGRESS AND EMPLOYMENT: SUMMERY OF
THEORETICAL COBTRIBUTION FROM MERCANTILISTS TO
SOLOW MODEL
1.1The mercantilists1
Already the mercantilists2 discussed the relation between employment and technical change: the
latter was defined as “Simplifications of the Arts.”
These were generally viewed favourably because, as Sir William Petty ² argued, it allowed for
“one man to do the work of five men” (Petty, 1690).
However, as soon manifested a negative impact on employment, it was decided to introduce
legislation restricting the use of machinery.
Colbert ³ himself opposed to the introduction of machinery (which he called “enemies of labour”)
in private enterprises, and in that sense, he developed a so-called law against machines. Conversely,
he argued their adoption in public enterprises “to shorten the time and cost savings.”
Mercantilists noted the benefits of technological superiority in terms of international trade, but at
the same time they feared social disorder due to substitution of labour.
Their contribution, in some ways, laid the foundations for later and more complex thought of the
Classics.
1.2 The thought of the Classical Economist: Smith, Ricardo and Marx
In 1767 James Steuart3, anticipated half a century the thought of Ricardo, explaining how
machinery could lead to a sudden temporary unemployment. He realized that the use of machines
could reduce costs and therefore prices, which have rarely stated explicitly a link with the demand
for labour, so to be able to predict unambiguously the sign and magnitude of the final variation.
The theme of economic growth is central in the thinking of most classical economists, starting
with Smith and Ricardo up to Marx . The study assumes economic growth of interest in a dynamic
economy, able to reproduce and develop. The basic idea shared by the economists is that the
economy is determined in a surplus, which allows, if it is accumulated, or if it is converted into
capital, to fuel the growth of the economy. The surplus is what remains of the social
product once reinstated the consumer goods necessary for survival and reproduction of workers.
In general the Classical Economists argued the validity of the theory of compensation4, the
temporary nature of the sacrifices that must be borne by workers because of the direct effects that
technical progress leads to the total of the workers.
They believed that the introduction of machinery would reduced employment in the short term, but
in the long term loss of jobs will not remain permanent, because the workers expelled by the
machines would be returned to the manufacturing process to produce and to respond to
increased question, given the decline in prices caused by new technologies.
In this view, the compensation of the effects was an endogenous mechanism and required no special
1
Valeria Maria Pozzi: “ICT and employment (real or virtual?) the case Unitec”. Thesis in Economy of labour, Political Science,
University of Rome, 2000/2001
2
The term “mercantilism” was used for the first time by Adam Smith to describe the protectionist policy of European states in the
XVI centuries. The Mercantilists were a group of authors who lived between the XVI and XVIII century, many of whom hold
position in the public life of their respective countries.
3
James Steuart accepted a responsibility of government to maintain stable employment, through a series of interventionist measures.
4
This theory expresses the central thesis of neoclassical thought about the effects of technical progress on employment.
4
5. behaviour of the various classes.
Basically, technological unemployment for the Classical Economists could then occur when there is
an increase of production capable of reabsorbing it (since there is an insufficient increase in global
demand), or because there is insufficient supply of capital for this purpose.
The most famous Classics Smith Ricardo and Marx, consider the central role played by technical
progress which, by increasing labour productivity, allows, with the same number of employees, to
increase the product and then support the process of accumulation. With regard to technical
progress, however, what distinguishes the contribution of Ricardo and Marx, on the one hand, and
that of Smith, on the other, are the effects that it generates on employment.
1.2.1 Adam Smith
In 1776 the work of Adam Smith5 marked the birth of modern economic thought. The industrial
revolution that began in England in the second half of the eighteenth century, rapidly changed
relationships and methods of industrial production by laying down the shift from an exchange
economy to one based on the factory system.
Regarding the relationship between the introduction of machines and jobs, Smith did not see as
inevitable the idea of technological unemployment. He believed that with a substantially increases
of productivity6, increasing production, they could leave unchanged the number of employees, if the
major product obtained was entirely placed on the market: “This large increase in the amount of the
product, since the division of labour is generated by the same volume occupied for three reasons:
1. for increased dexterity of the individual worker;
2. saving time, which is normally lost in passing from one species to another task;
3. for the invention of a large number of machines which facilitate and reduce the working time
“(Smith, 1776, p. 6)..
According to this reasoning, technological unemployment could exist only in cases where the
market was unable to fully absorb the increased production resulting from technological change.
In Smith’s thought, the division of labour is at the centre of inventive activity because it allows to
focus on one job or occupation, in order to increase yields.
It is seen essentially as a specialization, through which it is better explained the relationship
between different levels of production capacity and various types of workers.
In his theoretical model of industrial structure, which he examined the split between sectors and
branches, Smith considers various groups of workers whose specific skills are involved in
production.
In conclusion, the author sees the work as a heterogeneous factor, as those involved in the
production process have different abilities and different levels of qualification.
The thought of Smith significantly influenced the debate that arose soon after on the technological
unemployment, partly because of various historical events of the period.
In March 1812 we held the first organized social revolt against the use of machines in a suburb of
Nottingham, England. This movement, which was defined as “Luddites”, named after its legendary
leader, the worker Ned Ludd, opposed the introduction of a new loom for socks (the Spinning
Jenny) in the knitting at home.
It was a revolt against the loss of labour and the poor quality of the product, made by independent
highly qualified workers. They defended the extension of the machines, which allowed the massive
recruitment of women and children in place of skilled Labour.
The “General Ludd” argued that the deterioration in quality would have resulted in the loss of many
markets and a further fall in employment.
The movement was well organized and achieved some success, what brought great alarm : was
increasingly invoked the doctrine of Classical Economics to justify repressive measures against the
Luddites (who were punished with death) and against the unions.
5
Adam Smith (1723 - 1790) was the founder of modern economics. He wrote as base of economic theory Inquiry Into the Nature and
Causes of the Wealth of Nations
6
Productivity: the amount of product obtained per unit of labor input in the production process.
5
6. 1.2.2 David Ricardo
The above describe was the background that gave rise to the thought and work of David Ricardo7,
classical economist who first manifested a change of opinion, compared to previous theories, on the
question of the employment impact of innovation.
In 1821 Ricardo in the third edition of his Principles8 clearly stated that the introduction of
technological innovations could harm workers, because the high cost of machinery, reducing the
wages fund, would create unemployment.
Ricardo argued, more precisely, that the replacement of human Labour to machines were, in
general, harmful to the interests of the working class, and was generally profitable for the capitalists
and landlords. In this regard unleashed a bitter diatribe by saying: “The opinion, of the working
class, that the use of machinery is often harmful to its interests, is not based on bias or error, but is
aligned with the correct principles of politics “(Ricardo, 1817, pag.392).
The reasoning is based on the assumption that the increase in net revenue generated by technical
change (of which only benefit the landlords and capitalists) is not necessarily accompanied by an
increase of gross national product (from which depends, however, the total income and the level of
total employment): on the contrary, this may even decrease.
Ricardo shows that the introduction of machinery led to a change in the composition of capital,
transforming a part of it from working capital to fixed capital . If the total capital is given, the
increase of the fixed reduces the share of capital allocated to the maintenance of workers (wages
fund), then leads to a reduction in employment.
If use of new technologies (and therefore a new technique of production) ensures the same profits of
the previous technique, although with a smaller production, then the capitalist can be satisfied,
while the workers are harmed by what Ricardo called “ Unemployment by mechanization.“ To
increase the working capital, however, there is the possibility of increasing global capital: it
depends on a propensity to save on your positive income of the capitalist and the decrease in
prices9. But if these two conditions were not verified, it generates unemployment because of the
lags and inflexibility of the mechanisms of Labour, directly resulting from supply constraints. At
that time, however, Ricardo felt compelled to change its formulation to detect very severe longterm compensatory effects.
The introduction of machinery promotes the reduction of goods prices, because decrease the
production costs, so, for the same nominal income and needs, the capitalist will be able to save
more.
The capital increase allows an increase in employment. Even if the production increase, thanks to
the machines, so to provide in the form of the net product the same volume of goods previously had
as a gross product, there would necessarily be even unemployment.
Basically, Ricardo believes that machines and work are constantly competing with each other and
the introduction of machinery in the production of goods depends on the price of Labour. In
conclusion, in the scheme ricardian the technical progress is working against investor interest in the
production of technological change. The possibility of reabsorption of the workers “liberated”
depends on the size of the net product which determines the level of capital accumulation, the share
of this allocated to working capital and from the level of demand for goods and services. In some
cases, all of these elements may facilitate the absorption of the “mechanization of unemployment”
through the growth of total employment.
1.2.3 Karl Marx
Another of the key authors of economic thought was inserted into the vein classic was Karl Marx10.
He believed that technical progress was a key variable in the whole economic system. In this sense,
7
David Ricardo (1772 - 1823) was an economist and politician English that advocated the free trade. He dealt with issues relating to
income, agricultural tariffs, international trade. Influenced the political thought of Marx.
8
In his most important work, “On the Principles of Political Economy and Taxation”, Ricardo treated in Chapter XXXI (on
Machinery) the argument of the introduction of machines in production processes.
9
For Ricardo, is that real wages should increase, and since money incomes are assumed constant, must decrease the price level .
6
7. capitalism was characterized by a continuous search for new products and industrial processes.
Especially laid stress on the importance of the social transformations caused by the “technological
revolution”.
Marx showed that bitter conflicts in the Labour market may lead to an acceleration of the processes
of mechanization, with a subsequent expulsion of many workers from the production process
(Marx, 1952, I, chap. XIII, 5).
In his view, competition among entrepreneurs induces them to adopt the techniques to more and
more capital-intensive, indirectly causing a downward pressure on wages: “The more productive
capital grows, the more you extend the division of Labour and the ‘use of machinery. The more the
division of Labour and the use of machinery are extended, the more it extends the competition of
the workers, the more it shrinks their wages “(Marx, 1849).
Marx also stressed that the accumulation of capital, the basis of economic development, causes the
increase of the organic composition of capital, ie the ratio of fixed capital and variable.
This results in a relative decrease in the demand for Labour and, therefore, an increase in
unemployment. This creates an industrial reserve army, whose size varies in different phases of the
business cycle.
In conclusion for Marx, technological unemployment is caused by a progressive replacement of the
machines at work.
1.3 The thought of Keynesian economists Harrod and Domar and the Solow’s neoclassical
model of growth11
In the previous paragraph we have finished our analysis with the thought of Marx. As already
mentioned, the marginalist school, which develops in the second half of the nineteenth century
10
Karl Marx (1818 - 1883) was an economist and philosopher. Developed a comprehensive philosophy, "historical materialism"
centered on the concept of class struggle and to demonstrate the historical necessity of overcoming capitalism
11
Raffaele Contini, Thesis “Growth, technological progress and unemployment”. Political Science, University of Pisa, 2002/2003
Panico (1998 ), p. 56
7
8. brought a change of perspective in economic theory. The fundamental problem was the allocation
of resources, and disappeared any reference to that of economic growth. At the same time "neoclassical economists believed that market forces, operating through changes in relative prices and
the substitution of production factors, generate a spontaneous tendency to full employment12."
If Schumpeter13 had already constructed a theory in which the growth, technological progress and
unemployment were treated in the same context, a decisive push to reconsider the problem of
economic development together with that of unemployment came from the Great Depression that
"endangered the political stability and ... gave rise to the need of a new economic theory that can
clarify whether market forces could lead the economy towards full employment. "
The fundamental problem faced by Harrod 14if an economic system can grow with full
employment and stable workforce. The conclusion reached is, however, that any equilibrium
solution is unstable: any deviation from the path of growth "guaranteed" leads the economic system
moving further away from equilibrium. It is also very difficult for the economy to grow at that rate
"natural" that would ensure full employment of workers.
A very similar conclusions also comes Domar15. His model wants to determine what course
should have the investments and the income of an economy because entrepreneurs demand all entire
workforce on the market. The problem is similar to that posed by Harrod, but there are differences
between the two models: the so-called "principle of instability" for example, is in Domar only
sketchy.
The neoclassical response to Harrod and Domar model is contained in the Solow16
model. Assuming price flexibility and substitutability of production factors, there are for Solow,
natural forces that ensure that the economy can grow along a path of growth steady-state and in
conditions of full employment. It 'can also demonstrate the possibility of balanced growth and an
unemployment rate of just putting a positive constant and that the labour supply curve, rather than
rigid, both positively and elastic.
Problems with the problems of Harrod and Domar arise, according to Solow, from the assumption
of fixed coefficients of production and, more generally, the use of assumptions valid in the short
term, but incompatible with a growing economy. Solow gives a common interpretation of the
models of Harrod and Domar, by bringing together the contributions of the two economists in a
single model: the "Harrod-Domar model."
The Solow model is capable of explaining all the "stylized facts" of growth, some empirical
regularities observed in the development of modern economies, only if it is introduced a
technological advancement that increases at a constant rate and exogenous. However, when the
labour supply is elastic, technical progress makes that growth is accompanied by a progressive
reduction in the unemployment rate, so it is impossible to coexist the steady-state growth with a rate
of constant unemployment.
CHAPTER 2
12
Joseph Schumpter (1883-1950) was an Austrian-American Economist and political scientist. He popularized the term “creative
destruction” in economics.
13
Roy Harrod (1900-1978) was an English Economist also known for his International Economics, a former standard textbook, the
first edition of which contained some observations and ruminations that would foreshadow theories developed independently by later
scholars (such as the Balassa-Samuelson effect).
14
Evsey Domar (1914-1997) was a Russian American Economist. He has made contributions in three main areas of economics:
economic history, comparative economics and economic growth. In 1946 he advanced the idea that economic growth served to
lighten the deficit and the national debt.
15
Robert Merton Solow (1924) is an American economist particularly known for his work on the theory of economic growth that
culminated in the exogenous growth model named after him. He was awarded the John Bates Clark Medal (in 1961) and the 1987
Nobel Memorial Prize in Economic Sciences.
16
8
9. TECHINIAL PROGRESS INCORPORTAED: TECHNICAL
RAPPRESENTATION17
1.1 Definition
We have technical progress incorporated when the it is realised in the form of new and
more advanced machinery and equipment, i.e. it incorporated in new capital goods.
On the contrary, so far has always believed that technical progress was used for the benefit of
all existing manufacturing processes, whatever the time when they were introduced, and it
was not necessary to specify how they were applied.
This is confirmed by Neoclassical theory of growth.
So, we can write a function of production as:
(1)
To represent the technical progress, supposing that operates with only passage of the time and
allows more production equal to capital and labour, i.e it is assumed that technical progress is not
incorporated, which favours similarly the production processes that use capital goods old and new.
In this case we can cite the metaphor of technical progress: “it rains like manna from heaven”:
manna that you have without doing anything special and that favour all the production processes
similarly, independently of age. If instead you consider the production processes, above all those
industrial (crucial point in the modern economic system) , you can see that very significant part of
the technical progress is” incorporated “ in new capital goods. If the technical progress is
incorporated in new machinery and equipment , manna falls only on new capital goods. This idea
was always been absent in the minds of economists, but was always been familiar to historians,
who have dealt the industrial revolution and economic development.
De Long E Summers (1992) observe that the beginning of the industrial revolution was already
identified by Blanqui in 1837, with two machines, the steam engine and the power loom, and since
“ the historical debates on the growth have underlined the role of the investments in machineries in
increasing the production capacity of labour”. They have taken over the phrase of Landes: “ The
machine is at the heart of the new economic civilization”, and using the expression of Mokyr, they
say that “ The technology incorporated in the machines has been the lever of wealth”.
Models with technical progress incorporated give much weight to investments. The technical
progress incorporated, that gradually becomes available as construction of machineries and
equipment, enters in the economic system only if investments are made (gross): only to the extent
that these new machines and equipments are purchased and installed. It establishes a link of cause –
effect between an economic variable – investment – and technical progress, that is a (partial) form
of its endogenous process.
17
L. Boggio, G. Seravalli : “The economic development. Facts, theories, policies” Il Mulino 2003
9
10. The concept of technical progress incorporated in machines and the models that use it provide an
important contribution with regard to the link between accumulation of capital and higher wages. In
the traditional neoclassical model the higher wages leads to the adoption of techniques more
“capitalist” (with more use of capital to replace labour ). This assumes and requires the idea that
there are many techniques (with many different efficient combinations of labour and capital) to
produce the same product, and the idea that wage increases have no effect on productivity growth.
The empirical connection between growth and wages and the increase in capital intensity of
production processes could be explained in another way, with the effect of wage growth on the
adoption of more modern techniques ( independently if they are flexible or not in capital/labour
ratio).
To understand the mechanism that can operate in this way we have to think about the process of
replacement of technically obsolete equipment.
1.2 Replacement of technically obsolete equipment
In years models technical progress incorporated finds its clearest explication; so is necessary to
distinguish capital goods for “vintage” ( the date on which each of them was installed) , and show
how technical progress changed capital goods and their production process form year to year. These
following diagrams try to reduce this complications. We will assume the presence of production
process with “fixed coefficients”. The coefficient of work decreases by a year to the next, while
remain constant the other coefficients.
= labour productivity ( the inverse of labour coefficient, CL ( ) associated with capital goods
(machines) produced and installed at time , i. e. then of year, is a date between 0 and t, and t
is the last date considered (t as current moment, so T indicates a moment in the past). Every
machine, of any year, produce in each unit of time, a unit of final product and its cost is the capital
coefficient CK, that remain constant in the time. The technical progress incorporated shows as:
(2)
To an older machine – of year < t – corresponds a labour productivity less than that of the latest
machine (year t). With latest and more efficient productivity process don’t disappear immediately
those old. Their survival don’t depend only by the slowness with which knowledge and information
about new technologies they spread.
A process remains operational until “the current unit cost for the operation of the machine” is less
than the total unit cost, including depreciation, associated with the production process
more recently.
Suppose that the production process involved an initial cost of purchasing a machine, equal to CK,
The depreciation ,a, is calculated on the basis of the cost of the machine and of time with which you
expect/want to recover this cost (payback period) T33. The current unit cost for the operation of the
machine, is equal, per unit produced, to:
(3)
Where b is the cost per unit produced of materials,
is the wage rate at time t wt /π ( ) is the
labour cost per unit produced at time t in a production process started at time < t). All quantities
are expressed in term of final product. The total unit cost on the new machine is:
10
11. (4)
This is what the company’s revenue have to cover for a period not less than T if it want to
depreciate the initial cost for the purchase of the machine, CK.
age at time t of the machine with vintage ; a and b don’t depend on the age of the
machines. The current cost of operation, can be write as :
(5)
At any given moment t is different depending on the age of machines: it grows with the age. While
the wage rate is identical for all production process, no matter what machine use, productivity of a
machine is smaller the greater the age, because the technology incorporated in each machine is
much more advanced than the lower its age.
In the figure 4, where you can see an hypothetical situation in a given instant of time t, this
proposition is represented by a series of vertical segments, each of which expresses the current cost
of operation of the machine that has an age equal to the distance of the segment from the vertical
axis. This series is increasing with the age of the machine.
At time t , remain alive (working) all production process whose the current cost of operation is not
greater than the total unit cost of the productive process using more new capital goods (δ = 0)
If at time t the old machine can still produce with a unit cost of operation less than the total unit cost
of the new machine, there is no reason to abandon it. At time t remain alive all machines, so we
have:
(6)
In the figure 1 is represented the right side of inequality 6 , the total unit cost of the new machine is
equal to the distance of the horizontal line AB from horizontal axis ; δ*= age of the oldest machine
for which inequality is satisfied (6).
11
12. The machines with inferior age remain in live.
(segments on the left of δ*), the others are already
been eliminated (segments on the right of δ*).
Analyzing the inequality 4 we can understand the significant of the figure.
If at time t the firm have to choose between start the production or with the machine of age δ > 0,
or with the more new machine of age δ = 0, certainly would chooses the second. The old machine
should be purchased and so its unit cost should include the depreciation of initial investment (a),
how the new machine , while the new machine is more efficient.
Fig 1 Survival and substitution of productive process with old machine
The problem is if to continue the production with the old machine or leave that machine and replace
it with the new. In this choice is irrelevant if at time t the company has already recovered or not the
cost of the old machine ( selling quantities at least equal to those under which it was calculated the
depreciation, at a price not less than its total unit cost). If this recovery has not happened yet , if the
inequality 6 is not satisfied, insist on producing with the old machine (obsolete) would result in
higher unit cost than would be obtained when replacing with the new machine. Would not be
convenient to replace a old machine with new machine , when the unit cost of operation of the first
is less than the total unit cost of the second ( including the initial investment) In this case if the unit
price of selling the products, p, can cover the total unit cost of the second:
(7)
The company will allocate the depreciation of the old machine (or profit, if the depreciation has
already finished), for each unit sold, the sum ɛ + the difference between the unit cost of operation of
the old machine and the total unit cost of the new machine. This difference would be lost if the old
machine was replaced.
12
13. 1.3 The apparent substitution of capital for labour
Now we consider the effect of real wage growth , one of the stylized fact of the modern economic
development. The abandonment of an old machine for a new also depends on the level of wages.
The advantages of the first on the second are inversely proportional to the level of the wages and if
these are high enough, the advantage is relative and it is convenient replace it. In this way the
growth of real wage accelerates the process of substitution of machines.
V(w, δ , t) = the advantage of the new machine of year
= (t – δ) respect to a new machine
(of vintage t > ), defined as difference between total unit cost of a new machine and the cost of
operation of the old machine.
From 5 and 6 we have:
(8)
The productivity of the old machine is less than the productivity of the new machine,
so we have:
,
(9)
The advantage of the old machine is reduced with the increasing of wages. It resets when w = w*,
where w* is defined by:
(10)
(11)
13
14. According to (9), (10) and (11) we can represent the trend
of the advantage of the old machine with the increasing
of wages, in a graphic (graphic 2). Until wt > w* , it is
convenient maintain in function the old machine, if
wt < w* it is convenient to substitute it with a new
machine. The new machine have a capital/labour ratio CK
π (t). π ( ),the labour productivity is the inverse of the
labour coefficient , CL ( ). So
Fig. 2 Wage growth and replacement of used machine
(12)
For the old machine:
(13)
As:
(14)
14
15. Now:
(15)
When wages increase and reach the level w*, a new machine with higher capital/labour rate,
substitutes a old machine with lower capital/labour ratio.
So wages increases determined a” substitution of capital for labour “, in the sense intended by the
neoclassical theory, that is as moving as determined by the wages increase, along an isoquant. In
fact it’s everything else. It isn’t substitution of capital for labour, but it is substitution of capital
goods and productive process technologically oldest with others newest and most advanced.
15
16. CONCLUSIONS
The theories and models reported in Chapter 1 allow to better understand the incommunicability
between economy of the labour and of the growth, and the importance of models came after, such
as models of Pissarides18, Aghion19 and Howitt20, which have stimulated the research of neoclassical
theory to treat in a unitary contest growth, technological progress and unemployment.
The common misunderstanding reported at the end of Chapter 2, has rooted in the thinking and in
the language of those involved in economic development the idea that the neoclassical substitution
of capital for labour is an important phenomenon in the modern economic development. This has
served to validate the pervasive use of the neoclassical function of production , that in the
substitutability between factors , in particular between capital and labour, find one of its main
features. As the neoclassical apparatus is considered by the most part of neoclassical economists
the instrument par excellence that can express the substitution of capital for labour determined by
the real wages increase, if one is convinced that this substitution is a very important fact in the
modern economic development, the interpretative value of the neoclassical apparatus resulting
exalted. This conclusion, based on what has been said in these chapter, seems little foundation.
18
Christopher A. Pissarides (1948) is a Cypriot economist. He currently holds the Norman Sosnow Chair in Economics at
the London School of Economics. His research interests focus on several topics of macroeconomics, notably labor, economic growth,
and economic policy. In 2010, he was awarded the Nobel Prize in economics, jointly with Peter A. Diamond and Dale Mortensen, for
his contributions to the theory of search frictions and macroeconomics.
19
Philipe Aghion (1956) is a French economist. He is Robert C. Waggoner Professor of Economics at Harvard University. His main
research work is on growth and contract theory. With Peter Howitt, he developed the so-called "Schumpeterian paradigm", and
extended the paradigm in several directions; much of the resulting work is summarised in his joint book with Howitt entitled
"Endogenous Growth Theory".
20
Peter Howitt (1946) is a Canadian econimist He is the Lyn Crost Professor of Social Sciences at Brown University. Howitt is a
Fellow of the Econometric Society since 1994 and a Fellow of Royal Society of Canada since 1992. He served as President of
the Canadian Economics Association in 1993-1994 and was the editor of the Journal of Money, Credit, and Banking in the period
1997-2000. His most important work is “Innovation Competition and Growth: A Schumpterian Perspective on Canada’s Economy”.
16
17. BIBLIOGRAPHY
Valeria Maria Pozzi: “ICT and employment (real or virtual?) the case Unitec”. Thesis in Economy
of labour, Political Science, University of Rome, 2000/2001
Raffaele Contini, Thesis “Growth, technological progress and unemployment”. Political Science,
University of Pisa, 2002/2003
L. Boggio, G. Seravalli : “The economic development. Facts, theories, policies” Il Mulino 2003
Wikipedia: the free encyclopedia.
17