Journal Article

Approximate surrogate production functions

Bertram Schefold

in Cambridge Journal of Economics

Published on behalf of Cambridge Political Economy Society

Volume 37, issue 5, pages 1161-1184
Published in print September 2013 | ISSN: 0309-166X
Published online March 2013 | e-ISSN: 1464-3545 | DOI: https://dx.doi.org/10.1093/cje/bes056
Approximate surrogate production functions

More Like This

Show all results sharing these subjects:

  • Macroeconomics: Consumption, Saving, Production, Employment, and Investment
  • Mathematical Methods; Programming Methods; Mathematical and Simulation Modelling

GO

Show Summary Details

Preview

The Cambridge debate showed that an aggregation of capital is not possible in general. A recent investigation has found one example for reswitching and several for reverse capital deepening, but the paradoxes appear to be infrequent. The paper provides a theoretical justification of this result and shows how wage curves of input–output matrices with small non-dominant eigenvalues become quasi-linear with some numéraires. Large random systems lead to the genesis of such states. Approximate surrogate production functions then seem possible. A family of economic systems with constant capital composition allows construction of a surrogate production function.

Keywords: Capital theory; Production function; Aggregation; Random matrices; C62; C67; E25

Journal Article.  12883 words.  Illustrated.

Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment ; Mathematical Methods; Programming Methods; Mathematical and Simulation Modelling

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content. subscribe or login to access all content.