A generalized procedure to recover the first derivatives of a production function when the firm is a profit maximizer

Partial derivatives of production functions are necessary in many instances to characterize the technology of firms. We present here a general method to recover the first derivatives of the production function of a profit maximizing firm. The method is systematic and applies even when the optimizati...

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Bibliographic Details
Published inJournal of productivity analysis Vol. 26; no. 1; pp. 27 - 33
Main Authors Ouellette, Pierre, Vigeant, Stéphane
Format Journal Article
LanguageEnglish
Published Norwell Spring Science+Business Media 01.08.2006
Springer Nature B.V
Subjects
Business structures
Marginal products
Mathematical optima
Mathematical vectors
Matrices
Minimization of cost
Partial derivatives
Production functions
Profit maximization
Profits
Studies
Supply
Technology
Canada
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Summary:Partial derivatives of production functions are necessary in many instances to characterize the technology of firms. We present here a general method to recover the first derivatives of the production function of a profit maximizing firm. The method is systematic and applies even when the optimization problem of the firm is subject to additional constraints. It allows researcher to recover returns to scale and technological progress in complex situations.
Bibliography:SourceType-Scholarly Journals-1
ObjectType-General Information-1
content type line 14
ISSN:0895-562X
1573-0441
DOI:10.1007/s11123-006-0003-9