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A Brief History of Production Functions

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  • S K Mishra

Abstract

This paper gives an outline of evolution of the concept and econometrics of production function, which was one of the central apparatus of neoclassical economics. It shows how the famous Cobb-Douglas production function was indeed invented by von Thünen and Wicksell, how the Constant Elasticity of Substitution (CES) production function was formulated, how the elasticity of substitution was made a variable and finally how Sato’s function incorporated biased technical changes. It covers almost all specifications proposed during 1950 to 1975, as well as the linear-exponential (LINEX) production functions and incorporation of energy as an input. The paper is divided into single product functions, joint product functions, and aggregate production functions. It also discusses the ‘capital controversy’ and its impacts.

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Bibliographic Info

Article provided by IUP Publications in its journal The IUP Journal of Managerial Economics.

Volume (Year): VIII (2010)
Issue (Month): 4 (November)
Pages: 6-34

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Handle: RePEc:icf:icfjme:v:08:y:2010:i:3:p:6-34

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Cited by:
  1. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
  2. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09i29kgilc0 is not listed on IDEAS
  3. T.V.S.Ramamohan Rao, 2011. "Contemporary Relevance and Ongoing Controversies Related to the CES Production Function," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 36-57, July.
  4. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," Sciences Po publications 2011-21, Sciences Po.
  5. Romeo Ionescu, 2012. "Technical Progress as a Solution for Romania and Greece to Face the Global Crisis’ Problems and the Bad Forecasts," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 33-46.

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