Production Functions of Complex Variables

Abstract

The whole power of the apparatus of TFCV is demonstrated with reference to economic modeling on production functions of complex variables (PFCVs) – when the complex production result depends on the complex production resource. In this chapter the complex production result is represented as a variable with the gross margin as its real part and production costs as its imaginary part. Capital refers to the real part of the complex resource and labor to the imaginarypart. The main properties of linear, power, logarithmic, and exponential models of complex variables are considered consistently. Numerous complex coefficients of effectiveness are derived and their economic interpretation is given. Here we show how complex-valued econometrics can be used to model real production systems.