A new production function? Bowled by a googly
- 28 July 1991
- journal article
- research article
- Published by Taylor & Francis in Applied Economics
- Vol. 23 (7) , 1245-1246
- https://doi.org/10.1080/00036849100000163
Abstract
This paper clarifies the nature of the CES production function described in a recent paper by Bairam, Howells and Turner (BHT) in this journal. It is shown that the standard constant returns to scale CES function is a special case of the BHT function. In all other cases, the BHT function is not homogeneous of any degree in its inputs, and hence cannot be considered a neoclassical production function. Further, the BHT function is restrictive in that it does not admit homogeneous non-constant returns to scale CES functions.Keywords
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