A Note on the Characterization of the Neoclassical Production Function
- We study production functions with capital and labor as arguments that exhibit positive, yet diminishing marginal products and constant returns to scale. We show that such functions satisfy the Inada conditions if (i) both inputs are essential and (ii) an unbounded quantity of either input leads to unbounded output. This allows for an alternative characterization of the neoclassical production function that altogether dispenses with the Inada conditions. Although this proposition generalizes to the case of n > 2 factors of production, its converse does not hold: 2n Inada conditions do not imply that each factor is essential.
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| Author: | Alfred MaußnerGND, Andreas Irmen |
|---|---|
| URN: | urn:nbn:de:bvb:384-opus4-380081 |
| Frontdoor URL | https://opus.bibliothek.uni-augsburg.de/opus4/38008 |
| ISSN: | 1365-1005OPAC |
| Parent Title (English): | Macroeconomic Dynamics |
| Type: | Article |
| Language: | English |
| Year of first Publication: | 2017 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2018/04/06 |
| Volume: | 21 |
| Issue: | 7 |
| First Page: | 1827 |
| Last Page: | 1835 |
| Note: | Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG-geförderten) Allianz- bzw. Nationallizenz frei zugänglich. |
| DOI: | https://doi.org/10.1017/S136510051500098X |
| Institutes: | Wirtschaftswissenschaftliche Fakultät |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Empirische Makroökonomik (Maußner) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  Deutsches Urheberrecht |
