Efficiency isoquants as a function of input productivities or input - absorpition of outputs
AbstractClassic interpretation of the isoquant is well-known, e.g., the output isoquant informs us about the quantities of inputs that are needed to produce a given amount of output, assuming that the production technology is given. The article is an attempt to formulate an alternative interpretation of the isoquant. The author considers two situations: (a) a scalar output isoquant (one output is produced with more than one input), (b) a scalar input isoquant (one input is used to produce more than one output). In the article, instead of using classic isoquant interpretation (that isoquant is a function of input or output quantities), it is assumed that the isoquant is a function of input productivities or input-absorption of outputs. The quantities of inputs and outputs are constant. This kind of isoquant is called a dual isoquant. The article also points out some applications of these isoquants (which are called the isoquants of partial effect, IPE) to various types of analysis: technical efficiency analysis, studies of technology changes, problem of participation, structural change problem.
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Bibliographic InfoArticle provided by Wroclaw University of Technology, Institute of Organization and Management in its journal Operations Research and Decisions.
Volume (Year): 3-4 (2007)
Issue (Month): ()
isoquant with changing productivity; isoquant with changing input-absorption; technical efficiency;
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