M.ishaq Nadiri - Academia.edu (original) (raw)

Papers by M.ishaq Nadiri

Research paper thumbnail of Information Technology Externalities: Empirical Evidence from 42 U.S. Industries

for their very helpful comments and Steve Rosenthal for providing the data used in this paper. Th... more for their very helpful comments and Steve Rosenthal for providing the data used in this paper. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research.

Research paper thumbnail of Introduction to" Explorations in Economic Research, Volume 4, number 1 (Indexation, The Brazilian Experience

AdoJio C. Diz Centro do Estudioc \l000t,irjos La-tinoarIierinanr)s CEi\lL,). i'.li.ito, Of., 'vlé... more AdoJio C. Diz Centro do Estudioc \l000t,irjos La-tinoarIierinanr)s CEi\lL,). i'.li.ito, Of., 'vléxico Lucy Falcone 101 nt Econo mmC ((1(13 mi tt'e. lashing. ton. D.C., USA

Research paper thumbnail of Analysis of Inflation: 1965-1974

Research paper thumbnail of Public R&D policies and cost behavior of the US manufacturing industries

Journal of Public Economics, 1996

The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparin... more The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparing this manuscript and two referees for very constructive and helpful comments. We also acknowledge support from the C.

Research paper thumbnail of Production, Financial Structure and Productivity Growth in U.S. Manufacturing

The purpose of this paper is to estimate a model that incorporates the effects of financial decis... more The purpose of this paper is to estimate a model that incorporates the effects of financial decisions on production, profitability, and productivity growth. Asymmetric information generates agency costs of debt and signaling benefits of dividends which then influence production decisions. The model is applied to the U.S. manufacturing sector. Agency costs and signaling benefits are measured by their effects on profitability. A one percent increase in debt reduces variable profit by 0.04 percent, while a one percent increase in dividends raises variable profit by 0.12 percent. Agency costs also limit the adjustment of U.S. manufacturing to long-run equilibrium. On average, for 1.00offundsraisedthroughbondissues,debtadjustmentcostisabout1.00 of funds raised through bond issues, debt adjustment cost is about 1.00offundsraisedthroughbondissues,debtadjustmentcostisabout0.05. The dynamic efficiency of the manufacturing sector is affected by financial considerations. Signaling benefits contribute 4.2 percent to total factor productivity growth, while agency costs reduce efficiency by 3.3 percent. Thus the financial effects on dynamic efficiency approximately offset each other.

Research paper thumbnail of Infrastructure and Public R&D Investments, and the Growth of Factor Productivity in US Manufacturing Industries

In this paper we examine the effects of publicly financed infrastructure and R&D capital on the c... more In this paper we examine the effects of publicly financed infrastructure and R&D capital on the cost structure and productivity performance of twelve two-digit U.S. manufacturing industries. A general framework is developed to measure contribution of demand, relative input prices, technical change, as well as publicly financed capital on total factor productivity growth. The magnitude of the contribution of these sources varies considerably across industries: in some changes in demand dominate while in others changes in technology or relative prices are the main contributors. Publicly financed infrastructure and R&D capital contribute to productivity growth. However, the magnitudes of their contribution vazy considerably across industries and on the whole they are not the major contributors to TFP in these industries.

Research paper thumbnail of Decomposing Productivity Growth in the U.S. Computer Industry

Review of Economics and Statistics, 2008

In this paper, we examine the sources of the productivity growth in the U.S. computer industry fr... more In this paper, we examine the sources of the productivity growth in the U.S. computer industry from 1978 to 1999. We estimate a joint production model of output quantity and quality that distinguishes two types of technological changes: process and product innovations. Based on the estimation results, we decompose total factor productivity (TFP) growth rate into the contributions of process and product innovations and scale economies. We find that product innovation associated with better quality accounts for about 30% of the TFP growth in the computer industry. Furthermore, the TFP acceleration in the computer industry in the late 1990s is mainly derived from a rapid increase in product innovation.

Research paper thumbnail of 4 Dynamic Factor Demand Models and Productivity Analysis

We would like to thank, in particular, William Baumol and Dale Jorgenson, and the parti-

Research paper thumbnail of On the Role of the Innovative Entrepreneur in the Prosperity - and Decline - of Three Historical Economies

SSRN Electronic Journal, 2010

ABSTRACT Three historical papers on the influence of the innovative entrepreneur upon the achieve... more ABSTRACT Three historical papers on the influence of the innovative entrepreneur upon the achievements of their economies were presented at the annual meeting of the ASSA held in Atlanta in January 2010. The focus of the session was on the incentive structure built into the institutions of the three economies investigated, each of which had experienced an era of extraordinary economic accomplishment, followed by a period of marked decline. Of course, the causes of these developments were complex - no single influence can be expected to provide the sole explanation. Yet, in each case, the evidence indicates that each economy’s pertinent institutions initially provided strong incentives that led individuals with enterprising propensities and abilities to devote themselves to the promotion of innovations that were beneficial to their economies, rather than pursuing activities that promised private gains at the expense of the general welfare. The historical evidence cited in each paper comports with the hypothesis offered by leading economic historians, which asserts that the activities undertaken by entrepreneurs are influenced heavily by the institutions present in their economies, which provide the incentives that determine the activities to which entrepreneurs choose to allocate their efforts. The papers in this ASSA session examined evidence related to this hypothesis that indicates that the incentives, at least at the end of each economy’s prosperous periods, were such as to attract entrepreneurs away from the productive innovative activities in which these societies had achieved much success and prosperity. These studies offer important lessons for today’s impoverished economies, as well as for wealthy economies whose continued prosperity seems uncertain.

Research paper thumbnail of Dynamic Factor Demand Models and Productivity Analysis

@|L? TThL@U uLh @ Bi?ih@* *@tt Lu L_i*t Hf TTi?_ G 5 TT*i4i?|@h) @|ih@* uLh 5iU|L? D HD @i @||i4T... more @|L? TThL@U uLh @ Bi?ih@* *@tt Lu L_i*t Hf TTi?_ G 5 TT*i4i?|@h) @|ih@* uLh 5iU|L? D HD @i @||i4T|i_ |L t L t|iTM)t|iT L | i 4L_i*t @hi _ihi_ @?_ it |4@|i_ u|ih L h _tU ttL? Lu *?i@h^ @_h@|U _)?@4U u@U|Lh _i4@?_ 4L_i*t i _tU tt tiih@* @TThL@U it |L@h_t | i it|4@|L? Lu _)?@4U u@U |Lh _i4@?_ 4L_i*t ? }i?ih@* A t ?U* _it | i it|4@|L? Lu | i , *ih i^ @|L?t M) | i }i?ih@*3i_ 4i| L_ Lu 4L4i?|t @TThL@U c }i? h@|L?@* i TiU|@|L?t`i @*tL UL?t_ih | i uLh4 *@|L? @?_ it|4@|L? Lu 4L_i*t | ?|i T*@???} Lh3L?tc @?_ _tU tt | i hi*@|L?t T Lu 4L_i*t | @ ?|i @?_ ??|i T*@???} Lh3L? 5iU|L? e hiit tiih@* i4ThU@* @TT*U@|L?t Lu _)?@4U u@U|Lh _i 4@?_ 4L_i*t #)?@4U u@U|Lh _i4@?_ 4L_i*t @i Mii? _i*) i4T*L)i_ |L t| _) | i

Research paper thumbnail of Dynamic factor demand models, productivity measurement, and rates of return: Theory and an empirical application to the US Bell System

Structural Change and Economic Dynamics, 1990

Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor... more Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor demand that allows for considerable flexibility in both the choice of the functional form of the technology and the expectation formation process. This paper applies this methodology to estimate the production structure, and the demand for labor, materials, capital and R&D by the U.S. Bell System. The paper provides estimates for short-, intermediateand long-run price and output elasticities of the inputs, as well as estimates on the rate of return on capital and R&D. The paper also discusses the issue of the measurement of technical change if the firm Is in temporary rather than long-run equilibrium and the technology is not assumed to be linear homogeneous The paper provides estimates for input and output based technical change as well as for returns to scale. Furthermore, the paper gives a decomposition of the traditional measure of total factor productivity growth.

Research paper thumbnail of R, production structure and rates of return in the U.S., Japanese and German manufacturing sectors: A non-separable dynamic factor demand model

European Economic Review, 1986

ABSTRACT

Research paper thumbnail of Restriced Cost Functions and the Rate of Return to Quasi-Fixed Factors, with an Application to R&D and Capital in the Bell System

This paper provides a statistical test to assess the adequacy of static equilibrium models. The t... more This paper provides a statistical test to assess the adequacy of static equilibrium models. The test is based on a restricted cost function framework together with the envelope conditions which characterize static equilibrium for the quasi-fixed factors. We also show how restricted cost function models can be exploited to investigate some important issues such as the calculation of the rates of return to quasi-fixed factors, the determination of overor underinvestmerit in particular assets, and the distinction between short run excess capacity and long run economies of scale. We provide an empirical application of these techniques to data on the Bell System for the period 1947-1976, treating the stocks of physical capital and of research and development (R&D) as quasifixed inputs. The results suggest that there was substantial overinvestment in capital and underinvestment in R&D compared to the static equilibrium levels, and that the rates of return to capital and R&D were about 4.5 and 10-15 percent, respectively.

Research paper thumbnail of A test of static equilibrium models and rates of return to quasi-fixed factors, with an application to the bell system

Journal of Econometrics, 1986

The paper provides a statistical test to assess the adequacy of the static equilibrium framework ... more The paper provides a statistical test to assess the adequacy of the static equilibrium framework which can be used prior to specifying a fully dynamic equilibrium model. We develop and apply this test to the production structure and factor demand equations based on the theory of ...

Research paper thumbnail of Neoclassical Theory of Investment Behavior: A Comment

The Review of Economics and Statistics, 1970

Transfers from Developed to Underdeveloped Areas," Study Week on the Econometric Approach to... more Transfers from Developed to Underdeveloped Areas," Study Week on the Econometric Approach to Development Planning, Pontificiae Academie Scientiarum Scripts Varia (Amsterdam: North-Holland Publishing Company, 1965). [4] Hinrichs, HH, "Determinants of ...

Research paper thumbnail of Estimation of the depreciation rate of physical and R&D capital in the US total manufacturing sector

NBER WORKING PAPER SERIES ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE ... more NBER WORKING PAPER SERIES ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE US TOTAL MANUFACTURING SECTOR M. Ishaq Nadiri Ingmar R. Prucha Working Paper No. 4591 NATIONAL BUREAU OF ECONOMIC RESEARCH ...

Research paper thumbnail of Demande de facteurs et recherche-developpement: Estimations pour les Etats-Unis, le Japon, l'Allemagne et la France

Revue Economique, 1985

[fre] L'étude vise à comparer deux modèles de coûts d'ajustement, et à qu... more [fre] L'étude vise à comparer deux modèles de coûts d'ajustement, et à quantifier l'impact du déséquilibre dans les facteurs de production sur la croissance et le ralentissement de la productivité du travail. Un modèle de production brute et un modèle de valeur ajoutée sont estimés pour les secteurs manufacturiers des Etats-Unis, du Japon, de l'Allemagne fédérale et de la France

Research paper thumbnail of R&D, production structure and productivity growth: A comparison of the US, Japanese and Korean manufacturing sectors

NBER WORKING PAPER SERIES R&D, PRODUCTION STRUCTURE AND PRODUCTIVITY GROWTH: A COMPARISON OF THE ... more NBER WORKING PAPER SERIES R&D, PRODUCTION STRUCTURE AND PRODUCTIVITY GROWTH: A COMPARISON OF THE US, JAPANESE, AND KOREAN MANUFACTURING SECTORS M. Ishaq Nadiri Seongjun Kim Working Paper 5506 NATIONAL BUREAU OF ECONOMIC ...

Research paper thumbnail of R&D, production structure and rates of return in the U.S., Japanese and German manufacturing sectors: A non-separable dynamic factor demand model

European Economic Review, 1986

Research paper thumbnail of Information Technology Externalities: Empirical Evidence from 42 U.S. Industries

for their very helpful comments and Steve Rosenthal for providing the data used in this paper. Th... more for their very helpful comments and Steve Rosenthal for providing the data used in this paper. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research.

Research paper thumbnail of Introduction to" Explorations in Economic Research, Volume 4, number 1 (Indexation, The Brazilian Experience

AdoJio C. Diz Centro do Estudioc \l000t,irjos La-tinoarIierinanr)s CEi\lL,). i'.li.ito, Of., 'vlé... more AdoJio C. Diz Centro do Estudioc \l000t,irjos La-tinoarIierinanr)s CEi\lL,). i'.li.ito, Of., 'vléxico Lucy Falcone 101 nt Econo mmC ((1(13 mi tt'e. lashing. ton. D.C., USA

Research paper thumbnail of Analysis of Inflation: 1965-1974

Research paper thumbnail of Public R&D policies and cost behavior of the US manufacturing industries

Journal of Public Economics, 1996

The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparin... more The authors would like to thank Bhaswar Mukhopadhyay and Richard Simon for their help in preparing this manuscript and two referees for very constructive and helpful comments. We also acknowledge support from the C.

Research paper thumbnail of Production, Financial Structure and Productivity Growth in U.S. Manufacturing

The purpose of this paper is to estimate a model that incorporates the effects of financial decis... more The purpose of this paper is to estimate a model that incorporates the effects of financial decisions on production, profitability, and productivity growth. Asymmetric information generates agency costs of debt and signaling benefits of dividends which then influence production decisions. The model is applied to the U.S. manufacturing sector. Agency costs and signaling benefits are measured by their effects on profitability. A one percent increase in debt reduces variable profit by 0.04 percent, while a one percent increase in dividends raises variable profit by 0.12 percent. Agency costs also limit the adjustment of U.S. manufacturing to long-run equilibrium. On average, for 1.00offundsraisedthroughbondissues,debtadjustmentcostisabout1.00 of funds raised through bond issues, debt adjustment cost is about 1.00offundsraisedthroughbondissues,debtadjustmentcostisabout0.05. The dynamic efficiency of the manufacturing sector is affected by financial considerations. Signaling benefits contribute 4.2 percent to total factor productivity growth, while agency costs reduce efficiency by 3.3 percent. Thus the financial effects on dynamic efficiency approximately offset each other.

Research paper thumbnail of Infrastructure and Public R&D Investments, and the Growth of Factor Productivity in US Manufacturing Industries

In this paper we examine the effects of publicly financed infrastructure and R&D capital on the c... more In this paper we examine the effects of publicly financed infrastructure and R&D capital on the cost structure and productivity performance of twelve two-digit U.S. manufacturing industries. A general framework is developed to measure contribution of demand, relative input prices, technical change, as well as publicly financed capital on total factor productivity growth. The magnitude of the contribution of these sources varies considerably across industries: in some changes in demand dominate while in others changes in technology or relative prices are the main contributors. Publicly financed infrastructure and R&D capital contribute to productivity growth. However, the magnitudes of their contribution vazy considerably across industries and on the whole they are not the major contributors to TFP in these industries.

Research paper thumbnail of Decomposing Productivity Growth in the U.S. Computer Industry

Review of Economics and Statistics, 2008

In this paper, we examine the sources of the productivity growth in the U.S. computer industry fr... more In this paper, we examine the sources of the productivity growth in the U.S. computer industry from 1978 to 1999. We estimate a joint production model of output quantity and quality that distinguishes two types of technological changes: process and product innovations. Based on the estimation results, we decompose total factor productivity (TFP) growth rate into the contributions of process and product innovations and scale economies. We find that product innovation associated with better quality accounts for about 30% of the TFP growth in the computer industry. Furthermore, the TFP acceleration in the computer industry in the late 1990s is mainly derived from a rapid increase in product innovation.

Research paper thumbnail of 4 Dynamic Factor Demand Models and Productivity Analysis

We would like to thank, in particular, William Baumol and Dale Jorgenson, and the parti-

Research paper thumbnail of On the Role of the Innovative Entrepreneur in the Prosperity - and Decline - of Three Historical Economies

SSRN Electronic Journal, 2010

ABSTRACT Three historical papers on the influence of the innovative entrepreneur upon the achieve... more ABSTRACT Three historical papers on the influence of the innovative entrepreneur upon the achievements of their economies were presented at the annual meeting of the ASSA held in Atlanta in January 2010. The focus of the session was on the incentive structure built into the institutions of the three economies investigated, each of which had experienced an era of extraordinary economic accomplishment, followed by a period of marked decline. Of course, the causes of these developments were complex - no single influence can be expected to provide the sole explanation. Yet, in each case, the evidence indicates that each economy’s pertinent institutions initially provided strong incentives that led individuals with enterprising propensities and abilities to devote themselves to the promotion of innovations that were beneficial to their economies, rather than pursuing activities that promised private gains at the expense of the general welfare. The historical evidence cited in each paper comports with the hypothesis offered by leading economic historians, which asserts that the activities undertaken by entrepreneurs are influenced heavily by the institutions present in their economies, which provide the incentives that determine the activities to which entrepreneurs choose to allocate their efforts. The papers in this ASSA session examined evidence related to this hypothesis that indicates that the incentives, at least at the end of each economy’s prosperous periods, were such as to attract entrepreneurs away from the productive innovative activities in which these societies had achieved much success and prosperity. These studies offer important lessons for today’s impoverished economies, as well as for wealthy economies whose continued prosperity seems uncertain.

Research paper thumbnail of Dynamic Factor Demand Models and Productivity Analysis

@|L? TThL@U uLh @ Bi?ih@* *@tt Lu L_i*t Hf TTi?_ G 5 TT*i4i?|@h) @|ih@* uLh 5iU|L? D HD @i @||i4T... more @|L? TThL@U uLh @ Bi?ih@* *@tt Lu L_i*t Hf TTi?_ G 5 TT*i4i?|@h) @|ih@* uLh 5iU|L? D HD @i @||i4T|i_ |L t L t|iTM)t|iT L | i 4L_i*t @hi _ihi_ @?_ it |4@|i_ u|ih L h _tU ttL? Lu *?i@h^ @_h@|U _)?@4U u@U|Lh _i4@?_ 4L_i*t i _tU tt tiih@* @TThL@U it |L@h_t | i it|4@|L? Lu _)?@4U u@U |Lh _i4@?_ 4L_i*t ? }i?ih@* A t ?U* _it | i it|4@|L? Lu | i , *ih i^ @|L?t M) | i }i?ih@*3i_ 4i| L_ Lu 4L4i?|t @TThL@U c }i? h@|L?@* i TiU|@|L?t`i @*tL UL?t_ih | i uLh4 *@|L? @?_ it|4@|L? Lu 4L_i*t | ?|i T*@???} Lh3L?tc @?_ _tU tt | i hi*@|L?t T Lu 4L_i*t | @ ?|i @?_ ??|i T*@???} Lh3L? 5iU|L? e hiit tiih@* i4ThU@* @TT*U@|L?t Lu _)?@4U u@U|Lh _i 4@?_ 4L_i*t #)?@4U u@U|Lh _i4@?_ 4L_i*t @i Mii? _i*) i4T*L)i_ |L t| _) | i

Research paper thumbnail of Dynamic factor demand models, productivity measurement, and rates of return: Theory and an empirical application to the US Bell System

Structural Change and Economic Dynamics, 1990

Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor... more Prucha and Nadiri (1982,1986,1988) introduced a methodology to estimate systems of dynamic factor demand that allows for considerable flexibility in both the choice of the functional form of the technology and the expectation formation process. This paper applies this methodology to estimate the production structure, and the demand for labor, materials, capital and R&D by the U.S. Bell System. The paper provides estimates for short-, intermediateand long-run price and output elasticities of the inputs, as well as estimates on the rate of return on capital and R&D. The paper also discusses the issue of the measurement of technical change if the firm Is in temporary rather than long-run equilibrium and the technology is not assumed to be linear homogeneous The paper provides estimates for input and output based technical change as well as for returns to scale. Furthermore, the paper gives a decomposition of the traditional measure of total factor productivity growth.

Research paper thumbnail of R, production structure and rates of return in the U.S., Japanese and German manufacturing sectors: A non-separable dynamic factor demand model

European Economic Review, 1986

ABSTRACT

Research paper thumbnail of Restriced Cost Functions and the Rate of Return to Quasi-Fixed Factors, with an Application to R&D and Capital in the Bell System

This paper provides a statistical test to assess the adequacy of static equilibrium models. The t... more This paper provides a statistical test to assess the adequacy of static equilibrium models. The test is based on a restricted cost function framework together with the envelope conditions which characterize static equilibrium for the quasi-fixed factors. We also show how restricted cost function models can be exploited to investigate some important issues such as the calculation of the rates of return to quasi-fixed factors, the determination of overor underinvestmerit in particular assets, and the distinction between short run excess capacity and long run economies of scale. We provide an empirical application of these techniques to data on the Bell System for the period 1947-1976, treating the stocks of physical capital and of research and development (R&D) as quasifixed inputs. The results suggest that there was substantial overinvestment in capital and underinvestment in R&D compared to the static equilibrium levels, and that the rates of return to capital and R&D were about 4.5 and 10-15 percent, respectively.

Research paper thumbnail of A test of static equilibrium models and rates of return to quasi-fixed factors, with an application to the bell system

Journal of Econometrics, 1986

The paper provides a statistical test to assess the adequacy of the static equilibrium framework ... more The paper provides a statistical test to assess the adequacy of the static equilibrium framework which can be used prior to specifying a fully dynamic equilibrium model. We develop and apply this test to the production structure and factor demand equations based on the theory of ...

Research paper thumbnail of Neoclassical Theory of Investment Behavior: A Comment

The Review of Economics and Statistics, 1970

Transfers from Developed to Underdeveloped Areas," Study Week on the Econometric Approach to... more Transfers from Developed to Underdeveloped Areas," Study Week on the Econometric Approach to Development Planning, Pontificiae Academie Scientiarum Scripts Varia (Amsterdam: North-Holland Publishing Company, 1965). [4] Hinrichs, HH, "Determinants of ...

Research paper thumbnail of Estimation of the depreciation rate of physical and R&D capital in the US total manufacturing sector

NBER WORKING PAPER SERIES ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE ... more NBER WORKING PAPER SERIES ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE US TOTAL MANUFACTURING SECTOR M. Ishaq Nadiri Ingmar R. Prucha Working Paper No. 4591 NATIONAL BUREAU OF ECONOMIC RESEARCH ...

Research paper thumbnail of Demande de facteurs et recherche-developpement: Estimations pour les Etats-Unis, le Japon, l'Allemagne et la France

Revue Economique, 1985

[fre] L'étude vise à comparer deux modèles de coûts d'ajustement, et à qu... more [fre] L'étude vise à comparer deux modèles de coûts d'ajustement, et à quantifier l'impact du déséquilibre dans les facteurs de production sur la croissance et le ralentissement de la productivité du travail. Un modèle de production brute et un modèle de valeur ajoutée sont estimés pour les secteurs manufacturiers des Etats-Unis, du Japon, de l'Allemagne fédérale et de la France

Research paper thumbnail of R&D, production structure and productivity growth: A comparison of the US, Japanese and Korean manufacturing sectors

NBER WORKING PAPER SERIES R&D, PRODUCTION STRUCTURE AND PRODUCTIVITY GROWTH: A COMPARISON OF THE ... more NBER WORKING PAPER SERIES R&D, PRODUCTION STRUCTURE AND PRODUCTIVITY GROWTH: A COMPARISON OF THE US, JAPANESE, AND KOREAN MANUFACTURING SECTORS M. Ishaq Nadiri Seongjun Kim Working Paper 5506 NATIONAL BUREAU OF ECONOMIC ...

Research paper thumbnail of R&D, production structure and rates of return in the U.S., Japanese and German manufacturing sectors: A non-separable dynamic factor demand model

European Economic Review, 1986