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Representations and Identities for homogeneous Technologies

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  • Miguel Espinosa
  • Pietro Bonaldi
  • Hernán Vallejo

Abstract

Using up to nine different ways to represent a homogeneous technology, this paper proves explicit one to one identities between most of those different representations of a technology, outlining the homogeneity properties of each representation. These identities, which allow to shift from one representation of a technology to another -and which are summarized in a matrix of identities - can be useful since they provide a tool to obtain explicit functional forms forhomogeneous technologies. They can also be useful to simplify computational procedures when different representations of a technology are needed. Finally, the document also refers explicitly to some aspects of producer theory that are often neglected or treated in a marginal way in the literature, such as the inverse supply, the non conditional cost and the inverse input demandfunctions.

Suggested Citation

  • Miguel Espinosa & Pietro Bonaldi & Hernán Vallejo, 2008. "Representations and Identities for homogeneous Technologies," Documentos CEDE 4974, Universidad de los Andes, Facultad de Economía, CEDE.
  • Handle: RePEc:col:000089:004974
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    References listed on IDEAS

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    1. Larry Epstein, 1978. "Production Flexibility and the Behaviour of the Competitive Firm under Price Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(2), pages 251-261.
    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. Dale W. Jorgenson & Lawrence J. Lau, 1974. "The Duality of Technology and Economic Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(2), pages 181-200.
    4. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
    5. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, September.
    6. Diewert, W E, 1974. "Functional Forms for Revenue and Factor Requirements Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 119-130, February.
    7. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    8. repec:bla:scandj:v:91:y:1989:i:4:p:749-57 is not listed on IDEAS
    9. Ardeshir Dalal, 2000. "Strict concavity with homogeneity and decreasing returns to scale," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 28(3), pages 381-382, September.
    10. 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.
    11. Harold Hotelling, 1932. "Edgeworth's Taxation Paradox and the Nature of Demand and Supply Functions," Journal of Political Economy, University of Chicago Press, vol. 40(5), pages 577-577.
    12. Appelbaum, Elie & Harris, Richard, 1977. "Estimating Technology in an Intertemporal Framework: A Neo-Austrian Approach," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 161-170, May.
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    Cited by:

    1. Appelbaum, Elie & Harris, Richard, 1977. "Estimating Technology in an Intertemporal Framework: A Neo-Austrian Approach," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 161-170, May.

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    More about this item

    Keywords

    Identities; homogeneous production functions and firm theory;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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