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Supply Elasticities (supply + elasticity)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	80%

Selected Abstracts

The effects of pay and job satisfaction on the labour supply of hospital consultants

HEALTH ECONOMICS, Issue 12 2007
Divine Ikenwilo
Abstract There is little evidence about the responsiveness of doctors' labour supply to changes in pay. Given substantial increases in NHS expenditure, new national contracts for hospital doctors and general practitioners that involve increases in pay, and the gradual imposition of a ceiling on hours worked through the European Working Time Directive, knowledge of the size of labour supply elasticities is crucial in examining the effects of these major changes. This paper estimates a modified labour supply model for hospital consultants, using data from a survey of consultants in Scotland. Rigidities in wage setting within the NHS mean that the usual specification of the labour supply model is extended by the inclusion of job quality (job satisfaction) in the equation explaining the optimal number of hours worked. Generalised Method of Moments estimation is used to account for the endogeneity of both earnings and job quality. Our results confirm the importance of pay and non-pay factors on the supply of labour by consultants. The results are sensitive to the exclusion of job quality and show a slight underestimation of the uncompensated earnings elasticity (of 0.09) without controlling for the effect of job quality, and 0.12 when we controlled for job quality. Pay increases in the new contract for consultants will only result in small increases in hours worked. Small and non-significant elasticity estimates at higher quantiles in the distribution of hours suggest that any increases in hours worked are more likely for consultants who work part time. Those currently working above the median number of hours are much less responsive to changes in earnings. Copyright © 2007 John Wiley & Sons, Ltd. [source]

Discreteness and the Welfare Cost of Labor Supply Tax Distortions*

INTERNATIONAL ECONOMIC REVIEW, Issue 3 2003
Keshab Bhattarai
We compare the welfare costs of tax distortions of labor supply in one- and two-member household discrete and continuous choice labor supply (leisure consumption) models calibrated to the same aggregate uncompensated labor supply elasticities. In the discrete models, taxes induce a large response from a subset of the population, whereas the majority of the population exhibits unchanged behavior. In contrast, the majority of the population reacts to tax changes in continuous models. Discrete choice matters as the welfare costs of similar taxes vary significantly when individuals face discrete labor supply choices from when they choose working hours continuously. [source]

Economic Returns to Feed Barley Yield-increasing and Disease Resistance Research at the Alberta Field Crop Development Centre

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2003
Joseph G. Nagy
The Alberta Field Crop Development Centre (FCDC) at Lacombe has carried out an extensive research and development program on feed barley since 1973. Prior to 2002, FCDC released 11 hulled and six hull-less barley varieties that have been adopted by farmers. The primary objective of this study is to estimate an economic rate of return to the FCDC barley research and development program from 1973 to 2001. A secondary objective is to include benefits arising from research that improved feed barley disease resistance in new cultivars in addition to benefits from purely higher-yielding cultivar research. The analysis uses an ex post economic surplus methodology. Benefits are identified and empirically investigated for three separate FCDC feed barley research thrusts: , benefits arising from FCDC research that developed new, higher-yielding feed barley cultivars that give a yield advantage , benefits arising from FCDC research that improved feed barley disease resistance in new cultivars that result in yield loss avoidance from disease , benefits arising from FCDC research that developed new feed barley cultivars that yield higher silage production. Of the total benefits from research on feed grain varieties, 52% can be attributed to yield advantage research and 48% to yield loss avoidance research. The overall internal rate of return with base elasticity parameters is estimated at 27%, ranging between 23% and 31%, depending on the assumptions made about the yield advantage and base variety. The IRR was sensitive to changes in supply elasticities and ranges from 20% (,= 1.5) to 54% (,= 0.1). L'Alberta Field Crop Development Center (FCDC) de Lacombe poursuit un vaste programme de recherche et de dáveloppement sur l'orge fourragàre depuis 1973. Avant 2002, le FCDC a homologuá onze variátás d'orge ordinaire et six à grains nus que les agriculteurs ont par la suite adoptáes. La prásente átude devait estimer la rentabilitá du programme entre 1973 et 2001. Un objectif secondaire consistait à inclure les retombáes rásultant des cultivars plus rásistants à la maladie à celles dérivant uniquement de l'amélioration du rendement. L'analyse reposait sur la méthode ex-post des excédents économiques. L'auteur a identifié les retombées et les a examinées en fonction de trois courants distincts de la recherche entreprise au FCDC: (1) les retombées issues des cultivars d'orge fourragère à rendement plus élevé; (2) celles venant des travaux sur la résistance des variétés qui ont abouti à un meilleur rendement grâce à de moins grandes pertes attribuables à la maladie; (3) celles résultant de la création de cultivars d'orge fourragère produisant plus d'ensilage. Sur les retombées totales de la recherche, 52 % résultaient de l'amélioration du rendement et 48 % de la réduction des pertes associées à la maladie. On situe le taux de rentabilité interne global à 27 % avec les élasticités de base, soit entre 23 et 31 % selon les hypothèses sur l'amélioration du rendement et la variété de départ. Le taux de rentabilité interne est sensible à la variation des élasticités de l'offre et fluctue de 20 ,= 1, 5) à 54% (,= 0,1). [source]

Using non,time,series to determine supply elasticity: how far do prices change the Hubbert curve?

OPEC ENERGY REVIEW, Issue 2 2002
Douglas B. Reynolds
An important concern of OPEC's work is to be able to understand how much supply of oil exists in different countries, in order to help better conserve oil. This paper extends M. King Hubbert's oil production and discovery forecasting model (Hubbert, 1962), using a non,time,series cumulative discovery and production quadratic Hubbert curve and structural shift variables to model technology and regulation changes. The model can be used to determine better world oil supplies. Price is tested, to see how powerful it is for increasing or decreasing oil supply. Using a trend of cumulative production, instead of time, will help to better fix the supply elasticity with respect to price, which is shown to be very inelastic. An interesting question is whether cumulative discovery or production constitutes an I(2) variable. This paper explains that they are not I(2) variables. [source]