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On scaling laws for production functions

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Summary

Solutions of functional equations are used in this paper to develop laws for scaling output under proportional changes in input vectors leading to special classes of production functions, which are of significance for the question of returns to scale.

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References

  • Eichhorn, W.: Eine Verallgemeinerung des Begriffs der homogenen Produktionsfunktion, Unternehmensforschung, Band13, Heft 2, 1969.

  • Goldman, S., andR. W. Shephard: On Eichhorn's Generalization of Homogeneous Production Functions, to appear in Unternehmensforschung.

  • Mc Elroy, F. W.: Returns to Scale, Euler's Theorem, and the Form of Production Functions, Econometrica, Vol. 37, April 1969.

  • Shephard, R. W.: Cost and Production Functions, Princeton University Press, 1953.

  • -: The Notion of a Production Function, Unternehmensforschung, Band11, Heft 4, 1967.

  • -: Theory of Cost and Production Functions, Princeton University Press, 1970.

  • —: Semi-Homogeneous Production Functions and Scaling of Production, in preparation, Operations Research Center, University of California, Berkeley, 1972.

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  • Zellner, A., andN. J. Revankar: Generalized Production Functions, Review of Economic Studies, Vol. 36, April 1969.

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Authors and Affiliations

  1. Operations Research Center, College of Engineering, University of California, Berkeley

    R. Färe

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  1. R. Färe
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I am grateful to ProfessorShephard with whom I have the great pleasure to work while writing this paper.

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Färe, R. On scaling laws for production functions. Zeitschrift für Operations Research 17, 195–205 (1973). https://doi.org/10.1007/BF01951418

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  • DOI: https://doi.org/10.1007/BF01951418

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