scholarly journals On Homogeneous Production Functions with Proportional Marginal Rate of Substitution

2013 ◽  
Vol 2013 ◽  
pp. 1-5 ◽  
Author(s):  
Alina Daniela Vîlcu ◽  
Gabriel Eduard Vîlcu
Keyword(s):  
Production Function ◽  
Production Functions ◽  
Marginal Rate ◽  
Constant Elasticity ◽  
Marginal Rate Of Substitution ◽  
Homogeneous Production ◽  
Rate Of Substitution

We completely classify homogeneous production functions with proportional marginal rate of substitution and with constant elasticity of labor and capital, respectively. These classifications generalize some recent results of C. A. Ioan and G. Ioan (2011) concerning the sum production function.

scholarly journals On Quasi-Homogeneous Production Functions

Symmetry ◽  
2019 ◽  
Vol 11 (8) ◽  
pp. 976 ◽  
Author(s):  
Alina-Daniela Vîlcu ◽  
Gabriel-Eduard Vîlcu
Keyword(s):  
Production Function ◽  
Production Functions ◽  
Marginal Rate ◽  
Constant Elasticity ◽  
Marginal Rate Of Substitution ◽  
Production Models ◽  
Homogeneous Production ◽  
Rate Of Substitution ◽  
Homogeneous Production Function

In this paper, we investigate the class of quasi-homogeneous production models, obtaining the classification of such models with constant elasticity with respect to an input as well as with respect to all inputs. Moreover, we prove that a quasi-homogeneous production function f satisfies the proportional marginal rate of substitution property if and only f reduces to some symmetric production functions.

scholarly journals TWO-FACTOR PRODUCTION FUNCTIONS WITH GIVEN MARGINAL RATE OF SUBSTITUTION

2019 ◽  
pp. 169-181
Author(s):  
G. Khatskevich ◽  
A. Pranevich ◽  
M. Chajkovskij
Keyword(s):  
Inverse Problems ◽  
Production Functions ◽  
Marginal Rate ◽  
Marginal Rate Of Substitution ◽  
Production Processes ◽  
Factor Production ◽  
Rate Of Substitution

The article is devoted to the study of inverse problems of identifying two-factor production functions from given marginal rate of technical substitution. The analytical forms of twofactor production functions with given linear-fractionalmarginal rate of technical substitution of labor by capital. Classes of two-factor production functions that correspond to given (constant, linear, linear-fractional, exponential, etc.) marginal rate of technical substitution areindicated. The obtained results can be applied in modeling of production processes.

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

2012 ◽  
Vol 43 (2) ◽  
pp. 321-328 ◽  
Author(s):  
Bang-Yen Chen
Keyword(s):  
Production Function ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Aggregate Level ◽  
Firm Level ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Homogeneous Production ◽  
Almost All

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 $n>2$

scholarly journals Economic analysis of cashew early dwarf Crop BRS - 189 depending on water levels and doses of potassium fertilization

2013 ◽  
Vol 33 (4) ◽  
pp. 739-747 ◽  
Author(s):  
Kelly N. Leite ◽  
Raimundo N. T. Costa ◽  
João R. Crisótomo ◽  
José A. Frizzone ◽  
Albanise B. Marinho
Keyword(s):  
Production Function ◽  
Water Levels ◽  
Net Income ◽  
Marginal Rate ◽  
Independent Variables ◽  
Marginal Rate Of Substitution ◽  
Production Factors ◽  
Physical Product ◽  
Technical And Economic Indicators ◽  
Rate Of Substitution

Water and fertilizer among the production factors are the elements that most restrict the production of cashew. The precise amount of these factors is essential to the success of the crop yield. This research aimed to determine the best factor-product ratio and analyze technical and economic indicators, of productivity of the cashew clone BRS 189 (Anacardium occidentale) to production factors water and potassium. The experiment was conducted from May 2009 to December 2009 in an experimental area of 56.0 m x 112.0 m in the irrigated Curu - Pentecoste, located in the municipality of Pentecoste, Ceará, Brazil. Production factors water (W) and potassium (K) were the independent variables and productivity (Y), the dependent variable. Ten statistical models that have proven satisfactory for obtaining production function were tested. The marginal rate of substitution was obtained through the ratio of the potassium marginal physical product and the water marginal physical product. The most suited model to the conditions of the experiment was the quadratic polynomial without intercept and interaction. Considering that the price of the water was 0.10 R$ mm -1, the price of the potassium 2.19 R$ kg -1 and the price of the cashew 0.60 R$ kg-1, the amounts of water and K2O to obtain the maximum net income were 6,349.1 L plant-1 of water and 128.7 g plant -1year, -1 respectively. Substituting the values obtained in the production function, the maximum net income was achieved with a yield of 7,496.8 kg ha-1 of cashew.

scholarly journals Valuing the impact of Self-rated Health and Social Support on life satisfaction among Hong Kong Chinese population

2021 ◽  
Author(s):  
Chee Hon Chan
Keyword(s):  
Social Support ◽  
Life Satisfaction ◽  
Hong Kong ◽  
Chinese Population ◽  
Cost Benefit ◽  
Marginal Rate ◽  
Self Rated Health ◽  
Marginal Rate Of Substitution ◽  
Compensating Surplus ◽  
Rate Of Substitution

Abstract Background Research has highlighted that satisfaction in health and social support are key areas of life affecting individual’s wellbeing. Many social and public health initiatives use these two intervention mechanisms to improve individual’s wellbeing. For the purpose of cost-benefit assessment, there has been growing interest in expressing these intervention effects in economic terms. However, only a handful of studies have ever estimated these effects in economic terms, and none of which examined in a Chinese context. The aim of this study is to extend this line of valuation work to estimate the implicit willingness-to-pays on the effects of improving individuals’ self-rated health status (SRH) and social support (SS) on their life satisfaction in the Chinese population. Methods Using individual’s life satisfaction data from a two-wave representative panel survey in Hong Kong (n = 1,109), this study first conducted a cross-lagged analysis with structural equation modelling technique to examine the causal effects of SRH and SS on life satisfaction, while simultaneously adjusting their reverse causal influences. The use of this cross-lagged approach was the effort to minimising the endogeneity problem. Then, substituting the respective estimates to the formulae of compensating surplus, the marginal rate of substitution of SRH and SS with respect to individual’s equivalised monthly household were estimated and were then expressed as the willingness-to-pays on the effect of improving individuals’ SRH and SS on their life satisfaction. Results The cross-lagged analysis ascertained the casual effects of SRH (β = 0.078, 95%CI: 0.020, 0.151) and SS on individuals’ satisfaction with life. The sample’s marginal rate of substitution of SRH and SS were found to be 1.28 (95%CI: 0.43, 2.15) and 1.36 (95%CI: 0.23, 2.49) respectively. Translating into the concept of compensating surplus, the implicit monetary values of improving the sample’s SRH from “poor health” to “excellent health” and their SS from “little support” to “a lot of support” are equivalent to an increase in their equivalised monthly household income by HK$56,000 and HK$39,400 respectively. Conclusions This study has implications for the cost-benefit assessment in wellbeing initiatives for the Chinese population.

CONSTANT-ELASTICITY-OF-SUBSTITUTION PRODUCTION FUNCTION

2008 ◽  
Vol 12 (5) ◽  
pp. 694-701 ◽  
Author(s):  
Hideki Nakamura ◽  
Masakatsu Nakamura
Keyword(s):  
Production Function ◽  
Capital Accumulation ◽  
Specific Form ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Intermediate Goods ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Douglas Production Function

We consider endogenous changes of inputs from labor to capital in the production of intermediate goods, i.e., a form of mechanization. We derive complementary relationships between capital accumulation and mechanization by assuming a Cobb–Douglas production function for the production of final goods from intermediate goods. A constant-elasticity-of-substitution production function in which the elasticity of substitution exceeds unity can be endogenously derived as the envelope of Cobb–Douglas production functions when the efficiency of inputs is assumed in a specific form. The difficulty of mechanization represents the elasticity of substitution.

scholarly journals A guide to extending and implementing generalized risk-adjusted cost-effectiveness (GRACE)

2021 ◽  
Author(s):  
Darius N. Lakdawalla ◽  
Charles E. Phelps
Keyword(s):  
Cost Effectiveness ◽  
Life Expectancy ◽  
Risk Preferences ◽  
Illness Severity ◽  
Health State ◽  
Marginal Rate ◽  
Permanent Disability ◽  
Adjusted Cost ◽  
Marginal Rate Of Substitution ◽  
Rate Of Substitution

AbstractThe generalized risk-adjusted cost-effectiveness (GRACE) model generalizes conventional cost-effectiveness analysis (CEA) by introducing diminishing returns to Health-Related Quality of Life (QoL). This changes CEA practice in three ways: (1) Willingness to pay (WTP) increases exponentially with untreated illness severity or pre-existing permanent disability, and WTP ends up lower for mild diseases but higher for severe diseases compared with conventional CEA; (2) Average treatment effectiveness should be adjusted for uncertainty in outcomes; and (3) The marginal rate of substitution between life expectancy and QoL varies with health state. Implementing GRACE requires new parameters describing risk preferences over QoL, the marginal rate of substitution between life expectancy (LE) and QoL, and the variance and skewness of treatment outcomes distributions. In this paper, we provide: (1) a generalized WTP threshold incorporating the possibility of permanent disability; (2) a simpler method to estimate the tradeoff rate between QoL and LE, eliminating the need to carry out treatment-by-treatment estimates; (3) a more-general method to adjust WTP for illness severity that permits non-constant relative risk-aversion in QoL; (4) a new approach to estimating risk-preferences over QoL, leveraging established empirical methods from “happiness” economics; and (5) a step-by-step guide for practitioners wishing to implement multi-period GRACE analyses.

scholarly journals Generalized marginal rate of substitution in multiconstraint consumer’s problems and their reciprocal expenditure problems

SERIEs ◽  
2011 ◽  
Vol 2 (3) ◽  
pp. 401-421 ◽  
Author(s):  
Manuel Besada ◽  
Javier García ◽  
Miguel Mirás ◽  
Carmen Vázquez
Keyword(s):  
Marginal Rate ◽  
Marginal Rate Of Substitution ◽  
Rate Of Substitution
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