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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Published in | Journal of productivity analysis Vol. 26; no. 1; pp. 27 - 33 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Norwell
Spring Science+Business Media
01.08.2006
Springer Nature B.V |
Subjects | |
Online Access | Get full text |
ISSN | 0895-562X 1573-0441 |
DOI | 10.1007/s11123-006-0003-9 |
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Abstract | 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. |
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AbstractList | 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. 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. [PUBLICATION ABSTRACT] |
Author | Vigeant, Stéphane Ouellette, Pierre |
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Cites_doi | 10.2307/135812 10.2307/1911819 10.1023/A:1007851024735 |
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References | KJ Arrow (3_CR1) 1961; 29 Y Murata (3_CR4) 1977 P Ouellette (3_CR5) 2000; 14 P Lasserre (3_CR3) 1994; 27 H Averch (3_CR2) 1962; 52 |
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SubjectTerms | Business structures Marginal products Mathematical optima Mathematical vectors Matrices Minimization of cost Partial derivatives Production functions Profit maximization Profits Studies Supply Technology |
Title | A generalized procedure to recover the first derivatives of a production function when the firm is a profit maximizer |
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