Do supervisory inputs matter in a capital-intensive industry? Some evidence from a Japanese car transplant
✍ Scribed by Murugappa Krishnan; Ashok Srinivasan
- Book ID
- 101287145
- Publisher
- John Wiley and Sons
- Year
- 1997
- Tongue
- English
- Weight
- 106 KB
- Volume
- 18
- Category
- Article
- ISSN
- 0143-6570
No coin nor oath required. For personal study only.
✦ Synopsis
We estimate a translog production function based on data from a Japanese automobile plant in the Midwest where output is determined by capital and different supervisory time inputs. We fit a model which allows for heteroskedastic errors, where this heteroskedasticity is a function of various variables affecting perceived target severity. We find that while, as expected, capital inputs are important, each supervisory time input is also significant in this capital-intensive industry. Linear homogeneity in these inputs is rejected. We find evidence of asymmetry in substitution among different components of supervisory time. This asymmetry has implications for the design and allocation of supervisory tasks.