Determination of all generalized Hicks-neutral production functions (Q1825734)
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English | Determination of all generalized Hicks-neutral production functions |
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Determination of all generalized Hicks-neutral production functions (English)
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1989
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General Hicks-neutral production functions are F: \(I_ 1\times I_ 2\times...\times I_ n\times T\to {\mathbb{R}}\), which satisfy \[ \frac{\partial F}{\partial x_ i}/\frac{\partial F}{\partial x_ j}=g_{ij}(x_ i/x_ j)\quad (i\neq j\in \{1,2,...,n\}). \] Here \(I_ 1,...,I_ n\) are open intervals of positive reals for the ``production factors'' and T an arbitrary set for time or for the state of technology. Supposing only the existence of nonzero first partial derivatives, all such functions are determined by simpler methods and under somewhat weaker conditions than before [cf., e.g., \textit{F. Stehling}, ``On the characterization of some important classes of production functions'', (German) Habilitationsschrift (Karlsruhe 1974); and \textit{C. Blackorby}, \textit{D. Primont} and \textit{R. R. Russell}, ``Duality, separability, and functional structure: Theory and economic applications'' (1978; Zbl 0381.90005)]. They turn out to be time-dependent functions of \((\sum^{n}a_ kx^ b_ k)^{1/b}\) or of \(\prod^{n}x_ k^{a_ k}\) if \(n>2\) and of general homogeneous functions of first or zeroth degree or of their combination if \(n=2\). The impact of further restrictions is also discussed. The Pexider and translation equations dominate the proofs.
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Hicks-neutral production functions
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homogeneous functions
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translation equations
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