Jan 24, 2020

Seminar Report “Static and Dynamic Duality and Dynamic Factor Demand Model in Korea Industry”

On January 20, RCAPS welcomed Professor KIM Hyunho to deliver a RCAPS Current Research Seminar entitled “Static and Dynamic Duality and Dynamic Factor Demand Model in Korea Industry.”

KIM Hyunho教授/Professor KIM Hyunho
(Chonnam National University)

[Report by Professor KIM Sangho as the seminar organizer]

In the seminar, Prof. Kim presented theoretical aspects of duality as follows:

  • Characteristics of duality for optimization problem.
  • Producer's profit maximization and cost minimization problem.
  • Relationship between static duality and dynamic duality.
  • Derives a dynamic factor demand model.

Then, he sketches how he applies the dynamic factor model empirically as follows:

  • Applying a dynamic factor model to the Korean economy.
  • Estimate dynamic price elasticities of factor demands.
  • Simulate effects of minimum wage change on employment.

There are 12 students attending the seminar along with Director Yamagata, who provided valuable feedback at the Q&A session. The presentation was intense and very instructive to graduate students.
The students were also very active in the Q&A session even though presentation was very theoretical. Our students learned about duality in microeconomics and how a regression model is derived from the theory. Due to lack of time, the empirical part of presentation was just sketched without specific elaboration.

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