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Ensemble des possibilités de production, fonction de production et fonction de coût : une présentation de la dualité

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  • Pla, Josep M.

    (GREMAQ, Université des sciences sociales de Toulouse)

Abstract

The production possibility set is the basic representation of technological constraints faced by a single output firm. If the set satisfies some regularity conditions and if the producer is price-taker, we construct a production function and a cost function containing all the economically relevant information about the technology and we list the minimal properties these functions must satisfy. We exhibit the effects that some additional conditions on the production possibility set have on these functions. We show under which conditions it is possible to construct a cost function directly from the production function and conversely to construct a production function directly from the cost function; the informational equivalence between these functions, the so-called duality, is then presented as the equality of the original function and the function built from the dual one. L’ensemble des possibilités de production est la représentation première des contraintes technologiques qui font face à une entreprise mono-produit. Sous des hypothèses de régularité de cet ensemble et si le producteur considère les prix comme des données, on construit une fonction de production et une fonction de coût qui contiennent toute l’information économiquement pertinente sur la technologie et on dégage les propriétés minimales que doivent vérifier une fonction de production et une fonction de coût. On indique l’effet que des hypothèses supplémentaires sur l’ensemble des possibilités de production entraînent sur ces fonctions. On montre sous quelles hypothèses on peut construire la fonction de coût directement à partir de la fonction de production et réciproquement; la dualité, ou équivalence informationnelle entre les deux fonctions, est alors mise en évidence par l’égalité entre la fonction de départ et la fonction construite à partir de la fonction duale.

Suggested Citation

  • Pla, Josep M., 1988. "Ensemble des possibilités de production, fonction de production et fonction de coût : une présentation de la dualité," L'Actualité Economique, Société Canadienne de Science Economique, vol. 64(3), pages 416-441, septembre.
  • Handle: RePEc:ris:actuec:v:64:y:1988:i:3:p:416-441
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    1. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1, McMaster University Archive for the History of Economic Thought.
    2. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    3. Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4, McMaster University Archive for the History of Economic Thought.
    4. Diewert, W.E., 1993. "Duality approaches to microeconomic theory," Handbook of Mathematical Economics, in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 4, volume 2, chapter 12, pages 535-599, Elsevier.
    5. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    6. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
    7. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
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