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DEDUCING INDIRECT AGGREGATE FACTOR DEMAND, SUPPLY AND PROFIT CURVES

Year 2024, Volume: 13 Issue: 3, 246 - 265, 31.12.2024

Abstract

The aim of this research is to derive the equations of indirect aggregate factor demand, aggregate supply (forming a new growth model) and aggregate profit functions. In the study, based on the perfectly competitive firm profit maximization model, the macroeconomic growth model based on two, three and four factors of production, the equations of aggregate factor demand and total profit were inferred in terms of prices of goods and factors of production using optimization, derivative and consolidation formulas. A new macroeconomic model of growth, factor demand, and profit can be expressed, explained, and modeled in terms of the average commodity and factor prices of the economy. Theoretically, inferences are formed according to price variables linked to four factors of production. On the other hand, in practice, the corresponding variables may not be found in appropriate formations. The study will be leading to establishing and estimating macroeconometric indirect aggregate supply, factor demand and profit models. Additionally, the macroeconomic equations reached in the study can be developed into applied panel data models.

Ethical Statement

etiğe uygundur

Supporting Institution

nonapplicable

References

  • Davidson, P. (2018). Aggregate supply function. In The New Palgrave Dictionary of Economics. Palgrave Macmillan (pp 131–134). London. https://doi.org/10.1057/978-1-349-95189-5_587. (Accessed: 7.7.2024).
  • Epple, D., Gordon, B., Sieg, H. (June 2010). A new approach to estimating the production function for housing. American Economic Review, 100: 905–924. http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.3.905.
  • Felipe, J., Fisher, F.M. (2003). Aggregation in production functions: What applied economists should know, Metroeconomica, 54(2-3):208-262.DOI:10.1111/1467-999X.00166. (Accesed: 7.7.2024). (Accessed: 7.7.2024).
  • Felipe, J., Fisher, F.M. (2008). Aggregation (Production). In The New Palgrave Dictionary of Economics. Palgrave Macmillan (pp-1-9).London. https://doi.org/10.1057/978-1-349-95121-5_2552-1.(Accessed: 7.7.2024).
  • Hendersen, J.M., Quandt, R. E. (1980). Microeconomic theory (3rd ed.). McGraw Hill Publishing Company, USA.
  • Hilmer, C.E., Holt, M.T. (2005). Estimating indirect production functions with a more general specification: An application of the Lewbel model. Journal of Agricultural and Applied Economics, 37 (3): 619-634. https://doi.org/10.1017/S1074070800027127.
  • Kim, H.Y. (1988). Analyzing the indirect production function for U. S. manufacturing. Southern Economic Journal, 55(2):494-504. https://www.jstor.org/stable/1059121.
  • Nicholson, W.E. (1989) Microeconomic theory (4th ed.). The Dryden Press, USA.
  • Paravastu, S.A.V.B., Muehlen, Pvz, Chang, IL (2021). Coping with unobservables in estimating production functions: An example with US banking data. Sustainable Futures, 3:100058. https://doi.org/10.1016/j.sftr.2021.100058.
  • Petrin, A., Poi, B.P., Levinsohn, J. (2004). Production function estimation in Stata using inputs to control for unobservables. The Stata Journal, 4(2):113–123. https://journals.sagepub.com/doi/pdf/10.1177/1536867X0400400202
  • Salter, A.W. (November 28, 2022). Aggregate demand and aggregate supply: Keep it simple, stupid!, American Institute for Economic Research. https://www.aier.org/article/aggregate-demand-and-aggregate-supply-keep-it-simple-stupid/? (Accessed: 7.7.2024).
  • Silberberg, E. (1990). The structure of economics: A mathematical analysis. Mc-Graw Hill Inc., Mexico.
  • Solow, R. (August 1957). Technical change and the aggregate production function. Review of Economics and Statistics, 39 (3): 312-320. https://doi.org/10.2307/1926047.
  • Stoker, T.M. (2010). Aggregation (econometrics). In Durlauf, S.N., Blume, L.E. (eds) Macroeconometrics and Time Series Analysis. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280830_1. (Accessed: 7.7.2024).

DOLAYLI TOPLAM FAKTÖR TALEP, ARZ VE KAR EĞRİLERİNİN TÜRETİLMESİ

Year 2024, Volume: 13 Issue: 3, 246 - 265, 31.12.2024

Abstract

Bu araştırmanın amacı, herhangi bir ekonomiye ait dolaylı toplam faktör talebi, toplam arz (yeni bir büyüme modeli biçimlendirmesi) ve toplam kâr denklemlerini türetmektir. Çalışmada tam rekabetçi firma kâr maksimizasyonu modeli esas alınarak iki, üç ve dört üretim faktörüne dayalı makroekonomik büyüme modeli, toplam faktör talebi ve toplam kâr denklemleri optimizasyon, türev ve toplulaştırma formülleri kullanılarak mal ve üretim faktörü fiyatları cinsinden çıkarsanmıştır. Nihai denklem ve fonksiyonel ilişkilerin nasıl çıkarsandığı aşamalarıyla gösterilmiştir. Yeni bir makroekonomik büyüme, faktör talebi ve kâr modeli ekonominin veya sektörün ortalama mal ve faktör fiyatları ile ifade edilebilir, açıklanabilir ve modellenebilir. Teorik olarak çıkarsamaların dört üretim faktörüne bağlı fiyat değişkenlerine göre oluşturulmuş olmasıdır. Diğer taraftan, uygulamada karşılık gelen değişkenler yerli yerince bulunamayabilir. Makroekonometrik toplam arz, faktör talebi ve kâr tahmin modellerinin tahminlemesinde öncülük etmesidir. Çalışmada ulaşılan makroekonomik denklemler uygulamalı panel veri modellerine de genişletilip uygulanabilir.

Ethical Statement

Etiğe uygundur

Supporting Institution

yok

References

  • Davidson, P. (2018). Aggregate supply function. In The New Palgrave Dictionary of Economics. Palgrave Macmillan (pp 131–134). London. https://doi.org/10.1057/978-1-349-95189-5_587. (Accessed: 7.7.2024).
  • Epple, D., Gordon, B., Sieg, H. (June 2010). A new approach to estimating the production function for housing. American Economic Review, 100: 905–924. http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.3.905.
  • Felipe, J., Fisher, F.M. (2003). Aggregation in production functions: What applied economists should know, Metroeconomica, 54(2-3):208-262.DOI:10.1111/1467-999X.00166. (Accesed: 7.7.2024). (Accessed: 7.7.2024).
  • Felipe, J., Fisher, F.M. (2008). Aggregation (Production). In The New Palgrave Dictionary of Economics. Palgrave Macmillan (pp-1-9).London. https://doi.org/10.1057/978-1-349-95121-5_2552-1.(Accessed: 7.7.2024).
  • Hendersen, J.M., Quandt, R. E. (1980). Microeconomic theory (3rd ed.). McGraw Hill Publishing Company, USA.
  • Hilmer, C.E., Holt, M.T. (2005). Estimating indirect production functions with a more general specification: An application of the Lewbel model. Journal of Agricultural and Applied Economics, 37 (3): 619-634. https://doi.org/10.1017/S1074070800027127.
  • Kim, H.Y. (1988). Analyzing the indirect production function for U. S. manufacturing. Southern Economic Journal, 55(2):494-504. https://www.jstor.org/stable/1059121.
  • Nicholson, W.E. (1989) Microeconomic theory (4th ed.). The Dryden Press, USA.
  • Paravastu, S.A.V.B., Muehlen, Pvz, Chang, IL (2021). Coping with unobservables in estimating production functions: An example with US banking data. Sustainable Futures, 3:100058. https://doi.org/10.1016/j.sftr.2021.100058.
  • Petrin, A., Poi, B.P., Levinsohn, J. (2004). Production function estimation in Stata using inputs to control for unobservables. The Stata Journal, 4(2):113–123. https://journals.sagepub.com/doi/pdf/10.1177/1536867X0400400202
  • Salter, A.W. (November 28, 2022). Aggregate demand and aggregate supply: Keep it simple, stupid!, American Institute for Economic Research. https://www.aier.org/article/aggregate-demand-and-aggregate-supply-keep-it-simple-stupid/? (Accessed: 7.7.2024).
  • Silberberg, E. (1990). The structure of economics: A mathematical analysis. Mc-Graw Hill Inc., Mexico.
  • Solow, R. (August 1957). Technical change and the aggregate production function. Review of Economics and Statistics, 39 (3): 312-320. https://doi.org/10.2307/1926047.
  • Stoker, T.M. (2010). Aggregation (econometrics). In Durlauf, S.N., Blume, L.E. (eds) Macroeconometrics and Time Series Analysis. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280830_1. (Accessed: 7.7.2024).
There are 14 citations in total.

Details

Primary Language English
Subjects Economic Methodology, Macroeconomic Theory, Mathematical Economics, Microeconomic Theory
Journal Section Articles
Authors

Mustafa Akal 0000-0002-0504-100X

Publication Date December 31, 2024
Submission Date August 7, 2024
Acceptance Date September 16, 2024
Published in Issue Year 2024 Volume: 13 Issue: 3

Cite

APA Akal, M. (2024). DEDUCING INDIRECT AGGREGATE FACTOR DEMAND, SUPPLY AND PROFIT CURVES. Sakarya İktisat Dergisi, 13(3), 246-265.