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Functional Separability and the Existence of Consistent Aggregates in U.S. Manufacturing: Comment

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  • Ramaiah, Kirupakaran C
  • Dalal, Ardeshir J

Abstract

This paper examines the relationship between separability of the direct production function in inputs and separability of the indirect production function in input prices. In particular, it shows that simultaneous direct and indirect weak separability implies homotheticity of the direct production function, and hence homotheticity of the indirect production function. Thus, inferences regarding direct separability based on empirical tests for indirect separability would be valid only if homotheticity is also imposed and treated as maintained hypothesis. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Ramaiah, Kirupakaran C & Dalal, Ardeshir J, 1996. "Functional Separability and the Existence of Consistent Aggregates in U.S. Manufacturing: Comment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 253-258, February.
    • Handle: RePEc:ier:iecrev:v:37:y:1996:i:1:p:253-58
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    Cited by:

    1. Frondel, Manuel & Schmidt, Christoph M., 2004. "Facing the truth about separability: nothing works without energy," Ecological Economics, Elsevier, vol. 51(3-4), pages 217-223, December.

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