Danilo Yu. Cherevatskyi, Oleg I. Atabyekov, 80_04
Wednesday, 06 December 2017 00:43 | Author: Покотиленко Р.В. | 
Danilo Yu. Cherevatskyi,
PhD in Technical sciences
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ;
Oleg I. Atabyekov
Institute of Industrial Economics of NAS of Ukraine
03057, Ukraine, Kyiv, Gelabov str, 2.
Industrial integrated structures as robinson crusoe economies
Section: Problems of economy of industrial enterprises and manufacturing complexes
Ekon. promisl. 2017, 80(4): 63-74
Language: English
Abstract | Full text (PDF)
DOI:
References
1. Coase, R.H. (1937). The nature of the firm. Economica, 4(16), 386-405.
2. Karloff, B., & Karlof, B. (1989). Business strategy: a guide to concepts and models. London and Basingstoke: Macmillan Reference Books, 166 p.
3. Kuchma L. (2004). Ukraine: Development Strategy: Introductory Address by the President of Ukraine: [At the Scientific and Practical Conference "Strategy for Sustainable Development and Structural-Innovative Transformation of the Ukrainian Economy for the Period 2004-2015"]. Uryad. kur"yer, 21 kvit., p. 2 [in Ukrainian].
4. Hilferding, R. (1922). Finance capital: a study of the latest phase of capitalist development. Moskow: Gos. izd-vo, 496 p. [in Russian]
5. Varian, H.R. (2014). Intermediate Microeconomics: A Modern Approach (9th ed.) NY, London: W.W. Norton & Company.
6. McFadden, D. (1975). Robinson Crusoe meets Walras and Keynes. Berkley: Department of Economics, University of California.
7. Nekipelov, A. (2006). Formation and functioning of economic institutions: from the "Robinsonade" to a market economy based on individual production. Moskow: Ekonomist'.
8. Grapard, U., & Hewitson, G. (Eds.). (2012). Robinson Crusoe's economic man: a construction and deconstruction. New York: NY Routledge.
9. Hall, C.A., Lambert, J.G., & Balogh, S.B. (2014). EROI of different fuels and the implications for society. Energy policy, 64, pp. 141-152.
10. Cherevatskyi, D.Y., & Atabyekov, O.I. (2012). Production function of a coal mine and economic efficiency of its operation. Economic herald of the Donbas. 4(30), 56-62.
11. Sector doing its best to keep its head above water. Retrieved from https://www.qrc.org.au/media-releases/sector-best-keep-head-water/ [Accessed 10 Nov. 2017].
12. Annual Report pursuant to Section 13 0r 15 (D) of the Securities Exchange Act of 1934: For the fiscal year ended December 31, 2012. "Walter Energy Inc.". Retrieved from https://www.sec.gov/Archives/edgar/data/837173/000104746913 002036/a2213222z10-k.htm [Accessed 10 Nov. 2017].
13. Amosha, A.I., Radchenko, V.V., Ilyashov M.A., Halimendikov, E.N., Cherevatskiy, D.Yu., Atabekov, O.I., Kozhushok, O.D., Polovyan & et al. (2013). An Economic Aspects of the Massive Boring Wells in Gas-Coal Fields. Donetsk : Institute of the Economy of Industry of the NAS of Ukraine, 148 p. [in Russian].
14. Fyodorova, E.A. & Manabaeva, S.K. (2011). The influence of macro¬eco¬nomic factors on the capitalization of companies (for example, metallurgical companies «Nornikel», «Severstal», «Mechel»). Finansovaya analitika: problemyi i resheniya, 1 (43). pp. 18-25 [in Russian].
PhD in Technical sciences
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ;
Oleg I. Atabyekov
Institute of Industrial Economics of NAS of Ukraine
03057, Ukraine, Kyiv, Gelabov str, 2.
Industrial integrated structures as robinson crusoe economies
Section: Problems of economy of industrial enterprises and manufacturing complexes
Ekon. promisl. 2017, 80(4): 63-74
Language: English
Abstract | Full text (PDF)
DOI:
Abstract: A model, formulated by the Lausanne school of economics in the 30s of the XX century and known as the economy of Robinson Crusoe, forms a compulsory course in microeconomics at various universities of the world. Though it basically corresponds to the pattern of vertically-integrated system, it was undervalued by the industrialists.
Keeping in mind that when the economy of Robinson Crusoe is in a state of equilibrium, a graph of the consumer indifference curve touches a graph of the manufacturer’s production function in the point, which reflects the maximum of company profit, the analysis of operating efficiency of the system on the whole can be carried out by studying the operating mode of the producer of good only.
To adapt the classical model of Robinson Crusoe economy to the modern conditions of company operation it was offered to use a single-factor production function with an argument in the form of multi-resource equivalent (MRE), which is a hypothetic resource, combining the inputs of labour, electrical energy, fuel, materials, etc. and having the entire cost, which is equal to the entire company expenses.
Based on the analysis of profit fluctuations of coal mining enterprises (coal mines), which have various production characteristics and operate in various market conditions, a conclusion is drawn that the worse the operating conditions of the coal mine are the more intensive its production load should be to make it more cost-effective. At the same time, coal mines, working in favourable operating conditions, need to limit their production load.
It is worth to use the developed methodology to analyze and substantiate the methods of improving the operation of vertically-integrated systems in the sphere of coal washing, coke chemistry, metallurgy, power engineering and other branches of industry. At the same time, its introduction into practice requires further study of company production functions.
Keywords: Robinson Crusoe economy, integrated structures, industry, model, the Lausanne school.
JEL code: D5.
Keeping in mind that when the economy of Robinson Crusoe is in a state of equilibrium, a graph of the consumer indifference curve touches a graph of the manufacturer’s production function in the point, which reflects the maximum of company profit, the analysis of operating efficiency of the system on the whole can be carried out by studying the operating mode of the producer of good only.
To adapt the classical model of Robinson Crusoe economy to the modern conditions of company operation it was offered to use a single-factor production function with an argument in the form of multi-resource equivalent (MRE), which is a hypothetic resource, combining the inputs of labour, electrical energy, fuel, materials, etc. and having the entire cost, which is equal to the entire company expenses.
Based on the analysis of profit fluctuations of coal mining enterprises (coal mines), which have various production characteristics and operate in various market conditions, a conclusion is drawn that the worse the operating conditions of the coal mine are the more intensive its production load should be to make it more cost-effective. At the same time, coal mines, working in favourable operating conditions, need to limit their production load.
It is worth to use the developed methodology to analyze and substantiate the methods of improving the operation of vertically-integrated systems in the sphere of coal washing, coke chemistry, metallurgy, power engineering and other branches of industry. At the same time, its introduction into practice requires further study of company production functions.
Keywords: Robinson Crusoe economy, integrated structures, industry, model, the Lausanne school.
JEL code: D5.
References
1. Coase, R.H. (1937). The nature of the firm. Economica, 4(16), 386-405.
2. Karloff, B., & Karlof, B. (1989). Business strategy: a guide to concepts and models. London and Basingstoke: Macmillan Reference Books, 166 p.
3. Kuchma L. (2004). Ukraine: Development Strategy: Introductory Address by the President of Ukraine: [At the Scientific and Practical Conference "Strategy for Sustainable Development and Structural-Innovative Transformation of the Ukrainian Economy for the Period 2004-2015"]. Uryad. kur"yer, 21 kvit., p. 2 [in Ukrainian].
4. Hilferding, R. (1922). Finance capital: a study of the latest phase of capitalist development. Moskow: Gos. izd-vo, 496 p. [in Russian]
5. Varian, H.R. (2014). Intermediate Microeconomics: A Modern Approach (9th ed.) NY, London: W.W. Norton & Company.
6. McFadden, D. (1975). Robinson Crusoe meets Walras and Keynes. Berkley: Department of Economics, University of California.
7. Nekipelov, A. (2006). Formation and functioning of economic institutions: from the "Robinsonade" to a market economy based on individual production. Moskow: Ekonomist'.
8. Grapard, U., & Hewitson, G. (Eds.). (2012). Robinson Crusoe's economic man: a construction and deconstruction. New York: NY Routledge.
9. Hall, C.A., Lambert, J.G., & Balogh, S.B. (2014). EROI of different fuels and the implications for society. Energy policy, 64, pp. 141-152.
10. Cherevatskyi, D.Y., & Atabyekov, O.I. (2012). Production function of a coal mine and economic efficiency of its operation. Economic herald of the Donbas. 4(30), 56-62.
11. Sector doing its best to keep its head above water. Retrieved from https://www.qrc.org.au/media-releases/sector-best-keep-head-water/ [Accessed 10 Nov. 2017].
12. Annual Report pursuant to Section 13 0r 15 (D) of the Securities Exchange Act of 1934: For the fiscal year ended December 31, 2012. "Walter Energy Inc.". Retrieved from https://www.sec.gov/Archives/edgar/data/837173/000104746913 002036/a2213222z10-k.htm [Accessed 10 Nov. 2017].
13. Amosha, A.I., Radchenko, V.V., Ilyashov M.A., Halimendikov, E.N., Cherevatskiy, D.Yu., Atabekov, O.I., Kozhushok, O.D., Polovyan & et al. (2013). An Economic Aspects of the Massive Boring Wells in Gas-Coal Fields. Donetsk : Institute of the Economy of Industry of the NAS of Ukraine, 148 p. [in Russian].
14. Fyodorova, E.A. & Manabaeva, S.K. (2011). The influence of macro¬eco¬nomic factors on the capitalization of companies (for example, metallurgical companies «Nornikel», «Severstal», «Mechel»). Finansovaya analitika: problemyi i resheniya, 1 (43). pp. 18-25 [in Russian].
Last Updated (Wednesday, 06 December 2017 00:51)
