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A note on 2-input neoclassical production functions

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  • Moysan, Gwenaël
  • Senouci, Mehdi

Abstract

In this short note, we show how the space of elasticity of substitution functions maps into the space of 2-input neoclassical production functions. In doing so, we derive a general analytical formula for every 2-input neoclassical production function of class C2. We present a simple set of sufficient conditions for the Inada conditions to hold; and prove that the Solow model under capital-augmenting (or investment-specific) technical change is asymptotically balanced if and only if the capital share converges to a non-degenerated limit as the capital–labor ratio tends to infinity.

Suggested Citation

  • Moysan, Gwenaël & Senouci, Mehdi, 2016. "A note on 2-input neoclassical production functions," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 80-86.
    • Handle: RePEc:eee:mateco:v:67:y:2016:i:c:p:80-86
    DOI: 10.1016/j.jmateco.2016.09.011
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    Cited by:

    1. Pierre Barral & Mehdi Senouci, 2018. "Walking on two legs: Growth accounting with labor-saving and capital-saving technical change," Post-Print hal-01709599, HAL.
    2. Growiec, Jakub, 2018. "Factor-specific technology choice," Journal of Mathematical Economics, Elsevier, vol. 77(C), pages 1-14.
    3. repec:zib:zbmahj:v:1:y:2021:i:1:p:14-25 is not listed on IDEAS
    4. Saad Labyad & Mehdi Senouci, 2018. "Deriving multiple-input production and utility functions from elasticities of substitution functions ," Working Papers hal-01866275, HAL.
    5. Pierre Barral & Mehdi Senouci, 2018. "Walking on two legs: Growth accounting with labor-saving and capital-saving technical change," Working Papers hal-01709599, HAL.

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