Neoclassical Growth Model; Capital Accumulation; stagnation; Inada Conditions
Résumé :
[en] We study production functions with capital and labor as arguments that exhibit positive, yet diminishing marginal products and constant returns to scale. We show that such functions satisfy the Inada conditions if i) both inputs are essential and ii) an unbounded quantity of either input leads to unbounded output. This allows for an alternative characterization of the neoclassical production function that altogether dispenses with the Inada conditions. While this proposition generalizes to the case of n > 2 factors of production its converse does not hold: 2n Inada conditions do not imply that each factor is essential.
Disciplines :
Macroéconomie & économie monétaire
Auteur, co-auteur :
IRMEN, Andreas ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Maussner, Alfred; University of Augsburg > Department of Economics > Chair of Empirical Macroeconomics
Co-auteurs externes :
yes
Langue du document :
Anglais
Titre :
A Note on the Characterization of the Neoclassical Production Function
Date de publication/diffusion :
2016
Titre du périodique :
Macroeconomic Dynamics
ISSN :
1365-1005
eISSN :
1469-8056
Maison d'édition :
Cambridge University Press
Peer reviewed :
Peer reviewed vérifié par ORBi
Intitulé du projet de recherche :
Agecon C - Population Aging: An Exploration of its Effect on Economic Performance and Culture
