Approximate surrogate production functions
Year: 2013
Type: article
Abstract: 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.
Source: Cambridge Journal of Economics
DOI: 10.1093/cje/bes056
Author: B. Schefold
Institution: Goethe University Frankfurt
Language: French
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2056671628