Functional Structure and Aggregation
A production function can involve dozens or even hundreds of inputs that are combined to produce a single output. Economists can simplify these complex processes by positing separability restrictions which, in turn, yield (1) a particular functional struc
- PDF / 642,466 Bytes
- 43 Pages / 439.36 x 666.15 pts Page_size
- 58 Downloads / 183 Views
Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example: Intermediate Inputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example: House Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Functional Structure with Two Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defining Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Separability and Functional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Functional-Structure Equivalences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Functional Structure with More Than Two Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Separability of Dual Representations of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Homothetic Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Additive Functional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recursive Functional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multioutput Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 3 4 5 5 7 16 22 23 27 31 34 37 39 42
Abstract
A production function can involve dozens or even hundreds of inputs that are combined to produce a single output. Economists can simplify these complex processes by positing separability restrictions which, in turn, yield (1) a particular functional structure of the production function and (2) aggregates of subsets of the inputs that can be viewed as intermediate inputs. This has the effect of reducing the number of variables that enter the economic analysis.
D. Primont () Department of Economics, Southern Illinois University, Carbondale, IL, USA e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 S. C. Ray et al. (eds.), Handbook of Production Economics, https://doi.org/10.1007/978-981-10-3450-3_22-1
1
2
D. Primont
Various combinations of separability assumptions are considered, and the resulting forms of functional structure are characterized. This survey considers not only production functions but also dual representations such as cost functions and indirect output functions thereby giving rise to aggre
Data Loading...
