The optimal use of management.

We analyze the management input from the perspective of shadow cost minimization. Using Bloom and Van Reenen's management measure, we estimate management's shadow price, dual Morishima elasticities of substitution, and relative price efficiencies. We find that the shadow price of management is about...

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Publicado en:Economic Inquiry Vol. 59; no. 3; pp. 1346 - 1364
Autores principales: Sickles, Robin C., Sun, Kai, Triebs, Thomas P.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2021
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          Sickles, Robin C.
          Sun, Kai
          Triebs, Thomas P.
        affil:
          Economics Department, Rice University, Houston Texas,, USA
          School of Economics, Shanghai University, Shanghai, China
          School of Business and Economics, Loughborough University, Loughborough, UK
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        U.S. dollar
        Elasticity
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          U.S. dollar
          Elasticity
      keyword:
        elasticity of substitution
        management
        price efficiency
        shadow price
        elasticity of substitution
        management
        price efficiency
        shadow price
      ab: We analyze the management input from the perspective of shadow cost minimization. Using Bloom and Van Reenen's management measure, we estimate management's shadow price, dual Morishima elasticities of substitution, and relative price efficiencies. We find that the shadow price of management is about 1.3 million US dollars. Management is a weak dual complement for labor but a strong dual complement for capital. Increases in management reduce the relative income share of labor but not capital. Most firms use too little management, but relative use of management improves over time, with the combination of ownership and control, and competition.
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    language: English
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