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Continuous Switching of Techniques in Linear Production Models

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  • Bellino, Enrico

Abstract

In linear production models, a switching of technique consists, in general, of a discontinuous variation of a plurality of technical coefficients and of the capital/labor ratio. This result has often been claimed to hold only with discrete technologies; when techniques crowd indefinitely along the wage-profit frontier this approximates to traditional smooth behavior. This conjecture is disproved in this article: in general, technical coefficients and the capital/labor ratio vary discontinuously, either with a discrete or with a continuum spectrum of techniques along the wage-profit frontier. Copyright 1993 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Bellino, Enrico, 1993. "Continuous Switching of Techniques in Linear Production Models," The Manchester School of Economic & Social Studies, University of Manchester, vol. 61(2), pages 185-201, June.
    • Handle: RePEc:bla:manch2:v:61:y:1993:i:2:p:185-201
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    Cited by:

    1. Vienneau, Robert L., 2021. "Fluke Switch Points in Pure Fixed Capital Systems," Centro Sraffa Working Papers CSWP48, Centro di Ricerche e Documentazione "Piero Sraffa".
    2. Gontijo, Cláudio, 1998. "The Neoclassical Model in a Multiple-Commodity World: a Criticism on Marglin," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 52(2), April.
    3. Claudio Gontijo, 2007. "Arrow-Debreu And The Law Of Diminishing Returns: A Critical Appraisal," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 065, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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