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 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
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ISSN0895-562X
1573-0441
DOI10.1007/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.
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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Snippet Partial derivatives of production functions are necessary in many instances to characterize the technology of firms. We present here a general method to...
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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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