跳至主要内容

A Note on Separability of the Profit Function

Read full paper at:
http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50790#.VE8SJVfHRK0

Author(s)  
Based on the concept of translation elasticity we restate in this note the Fare and Grosskopf’s [1] conditions for additive separability of the profit function. We show that for the profit function to be additively separable, the technology must satisfy both simultaneous input-and-output translation homotheticity and graph translation homotheticity.
Cite this paper
Färe, R. and Karagiannis, G. (2014) A Note on Separability of the Profit Function. Theoretical Economics Letters, 4, 702-704. doi: 10.4236/tel.2014.48089.
 

[1] Fare, R. and Grosskopf, S. (2000) On Separability of the Profit Function. Journal of Optimization Theory and Applications, 105, 609-620. http://dx.doi.org/10.1023/A:1004693107475
[2] Balk, B.M., Fare, R. and Karagiannis, G. (2014) On Directional Scale Elasticities. Journal of Productivity Analysis. (forthcoming). http://dx.doi.org/10.1007/s11123-014-0399-6
[3] Luenberger, D.G. (1995) Microeconomic Theory. McGraw-Hill, New York.
[4] Chambers, R.G., Chung, Y. and Fare, R. (1998) Profit, Directional Distance Functions, and Nelrovian Efficiency. Journal of Optimization Theory and Applications, 98, 351-364.
http://dx.doi.org/10.1023/A:1022637501082
[5] Lau, L.J. (1972) Profit Functions for Technologies with Multiple Inputs and Outputs. Review of Economics and Statistics, 54, 281-289. http://dx.doi.org/10.2307/1937989
[6] Chambers, R.G. (2002) Exact Nonradial Input, Output and Productivity Measurement. Economic Theory, 20, 751-765. http://dx.doi.org/10.1007/s001990100231
[7] Briec, W. and Kerstens, K. (2004)A Luenberger-Hicks-Moorsteen Productivity Indicator: Its Relation to the Hicks-Moorsteen Productivity Index and the Luenberger Productivity Indicator. Economic Theory, 23, 925-939. http://dx.doi.org/10.1007/s00199-003-0403-2           eww141028lx
标签：

评论

发表评论

此博客中的热门博文

Does Immigration Promote the Investment of the Monopolistic Firm?

In the present paper, we examine the effect of increasing uncertainty of immigrants’ growth on the optimal timing of investment of a firm that has a monopolistic power over the labor market. It is revealed that when the uncertainty of immigrants’ growth is more than a threshold level, increasing uncertainty of immigrants’ growth accelerates the optimal timing of firms’ investment and enhances the economic growth, even if the uncertainty of immigrants’ growth is formulated by the geometric Brownian motion, which is in sharp contrast to the standard result that an increase in the uncertainty postpones the optimal timing. With an increase in the immigrants over the past ten years, workforces in the host countries have been growing significantly to the extent that the immigrants represent 70% of the increase in the workforce in Europe, and 47% in the United States as OECD indicates. In the present paper, we attempted to investigate the effect of increased uncertainty caused by the growi...
发表评论
阅读全文

Education Policy Implementation: A Mechanism for Enhancing Primary Education Development in Zanzibar

Education is one of the fundamental rights of individuals; therefore, the government of a country needs to develop and strengthen educational policy and quality as well as to ensure that everyone has equal access to basic education. The improvement of access and quality of education in the world is becoming as an essential factor in development, whereas the basic education (primary school), is acknowledged as a foundation of the higher educational development for every country. To fulfill this goal, governments introduce several policies and procedures; however, it requires some reforms and participation from the politician, policymakers, and other stakeholders to re-examine educational policy so that it can lead to multiplication and betterment of the reforms. Educational reforms actually focus on accountability. A positive educational development and reform is very challenging and needs more effort and strategy on how to use and utilize the resources effectively as such it can achie...
发表评论
阅读全文