scholarly journals Classification of $h$-homogeneous production functions with constant elasticity of substitution

2012 ◽  
Vol 43 (2) ◽  
pp. 321-328 ◽  
Author(s):  
Bang-Yen Chen
Keyword(s):  
Production Function ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Aggregate Level ◽  
Firm Level ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Homogeneous Production ◽  
Almost All

Almost all economic theories presuppose a production function, either on the firm level or the aggregate level. In this sense the production function is one of the key concepts of mainstream neoclassical theories. There is a very important class of production functions that are often analyzed in both microeconomics and macroeonomics; namely, $h$-homogeneous production functions. This class of production functions includes two important production functions; namely, the generalized Cobb-Douglas production functions and ACMS production functions. It was proved in 2010 by L. Losonczi \cite{L} that twice differentiable two-inputs $h$-homogeneous production functions with constant elasticity of substitution (CES) property are Cobb-Douglas' and ACMS production functions. Lozonczi also pointed out in \cite{L} that his proof does not work for production functions of $n$-inputs with $n>2$

CONSTANT-ELASTICITY-OF-SUBSTITUTION PRODUCTION FUNCTION

2008 ◽  
Vol 12 (5) ◽  
pp. 694-701 ◽  
Author(s):  
Hideki Nakamura ◽  
Masakatsu Nakamura
Keyword(s):  
Production Function ◽  
Capital Accumulation ◽  
Specific Form ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Intermediate Goods ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Douglas Production Function

We consider endogenous changes of inputs from labor to capital in the production of intermediate goods, i.e., a form of mechanization. We derive complementary relationships between capital accumulation and mechanization by assuming a Cobb–Douglas production function for the production of final goods from intermediate goods. A constant-elasticity-of-substitution production function in which the elasticity of substitution exceeds unity can be endogenously derived as the envelope of Cobb–Douglas production functions when the efficiency of inputs is assumed in a specific form. The difficulty of mechanization represents the elasticity of substitution.

scholarly journals On Quasi-Homogeneous Production Functions

Symmetry ◽  
2019 ◽  
Vol 11 (8) ◽  
pp. 976 ◽  
Author(s):  
Alina-Daniela Vîlcu ◽  
Gabriel-Eduard Vîlcu
Keyword(s):  
Production Function ◽  
Production Functions ◽  
Marginal Rate ◽  
Constant Elasticity ◽  
Marginal Rate Of Substitution ◽  
Production Models ◽  
Homogeneous Production ◽  
Rate Of Substitution ◽  
Homogeneous Production Function

In this paper, we investigate the class of quasi-homogeneous production models, obtaining the classification of such models with constant elasticity with respect to an input as well as with respect to all inputs. Moreover, we prove that a quasi-homogeneous production function f satisfies the proportional marginal rate of substitution property if and only f reduces to some symmetric production functions.

Using derived demand techniques to estimate Ontario roundwood demand

1983 ◽  
Vol 13 (6) ◽  
pp. 1174-1184 ◽  
Author(s):  
J. C. Nautiyal ◽  
B. K. Singh
Keyword(s):  
Paper Industry ◽  
Forest Products ◽  
Pulp And Paper Industry ◽  
The Other ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Lumber Industry ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Derived Demand

Derived demand for roundwood created by the three major forest-products industries in Ontario from 1952 to 1980 was estimated from the production functions of the industries. The Cobb–Douglas function represents the lumber and the veneer and plywood industries, and the constant elasticity of substitution (CES) function represents the pulp and paper industry. In all three industries, the derived demand for roundwood is price inelastic. A theorem that the sum of partial price elasticities of derived demand when output of the final product is held constant is equal to zero has been proved. Demand by the lumber industry showed regular fluctuations throughout the 29-year period of study, while that by the other two industries rose steadily except for a few slumps.

scholarly journals Intermetropolitan Comparisons Of Production Function

2011 ◽  
Vol 3 (2) ◽  
pp. 112
Author(s):  
Martin Williams ◽  
Tuan Ton-That
Keyword(s):  
Production Function ◽  
Production Technology ◽  
Returns To Scale ◽  
Elasticity Of Substitution ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Different Levels ◽  
Variable Returns To Scale ◽  
Inputs And Outputs

A nonhomogeneous production is used to study the features of the production technology across U.S. cities. We compute marginal productivities and scale elasticities for different levels of inputs and outputs. The form of the production function allows variable returns to scale. We can also test the Cobb-Douglas and constant elasticity of substitution forms within the nonhomogeneous specification. Conclusions are drawn concerning returns to scale across cities of different sizes.

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