Classification of $h$-homogeneous production functions with constant elasticity of substitution

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Published: Jun 25, 2012
DOI: https://doi.org/10.5556/j.tkjm.43.2012.1145
Keywords:
Homogeneous production function constant elasticity of substitution Cobb-Douglas production function ACMS production function

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Bang-Yen Chen
Department ofMathematics,Michigan StateUniversity, 619 Red Cedar Road, East Lansing,Michigan 48824–1027, USA.

Abstract

Almost all economic theories presuppose a production function, either on the firm level or the aggregate level. In this sense the production function is one of the key concepts of mainstream neoclassical theories. There is a very important class of production functions that are often analyzed in both microeconomics and macroeonomics; namely, $h$-homogeneous production functions. This class of production functions includes two important production functions; namely, the generalized Cobb-Douglas production functions and ACMS production functions. It was proved in 2010 by L. Losonczi \cite{L} that twice differentiable two-inputs $h$-homogeneous production functions with constant elasticity of substitution (CES) property are Cobb-Douglas' and ACMS production functions. Lozonczi also pointed out in \cite{L} that his proof does not work for production functions of $n$-inputs with $n>2$

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How to Cite
Chen, B.-Y. (2012). Classification of $h$-homogeneous production functions with constant elasticity of substitution. Tamkang Journal of Mathematics, 43(2), 321–328. https://doi.org/10.5556/j.tkjm.43.2012.1145
Issue
Vol. 43 No. 2 (2012)
Section
Papers

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