Elements of Production

  • Tönu Puu


Like in the previous chapter we try to collect production functions that may prove useful in a global dynamic analysis. In particular we focus varieties of the constant elasticity of substitution function with negative exponents which have been hardly used at all, but which prove most useful if we want to incorporate capacity constraints in production and cost functions. Combined with “putty/clay” ideas of malleable versus fixed capital during investment periods from the 1970s this much facilitates the discussion of evolving competition among few big firms to many small firms.


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Authors and Affiliations

  • Tönu Puu
    • 1
  1. 1.Centre for Regional Science (CERUM)Umeå UniversityUmeåSweden

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