A discrete geometric approach to heterogeneity and production theory

  • Simona Settepanella
  • Giovanni Dosi
  • Marco Grazzi
  • Luigi Marengo
  • Federico Ponchio
Article
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Abstract

This paper presents the mathematical and computational details which provide the bases of a new methodology for production analysis, void of the standard but empirically dubious assumptions of production theory, but able to assess the level and the evolution of intra-industry heterogeneity and to measure industry and firm-level productivity change. In particular, in this work, we show how geometry can be an effective tool to tackle some relevant issues in economics and how, with new computational methods, it is possible to switch from continuous models to discrete ones, the latter requiring a much smaller set of assumptions.

Keywords

Discrete geometry Zonotope Heterogeneity Production 

JEL codes

C61 C63 C67 C81 O30 D24 

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Copyright information

© Japan Association for Evolutionary Economics 2015

Authors and Affiliations

  • Simona Settepanella
    • 1
  • Giovanni Dosi
    • 2
  • Marco Grazzi
    • 3
  • Luigi Marengo
    • 4
  • Federico Ponchio
    • 5
  1. 1.Department of MathematicsHokkaido UniversitySapporoJapan
  2. 2.Institute of EconomicsScuola Superiore Sant’AnnaPisaItaly
  3. 3.Department of EconomicsUniversity of BolognaBolognaItaly
  4. 4.L.U.I.S.S.RomeItaly
  5. 5.C.N.R.PisaItaly

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