Reswitching and Decreasing Demand for Capital in a Model with a Continuum of Linear Techniques

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Reswitching and Decreasing Demand for Capital in a Model with a Continuum of Linear Techniques

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Saverio M. Fratini

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Saverio M. Fratini

Abstract

We consider a model of production with a continuum of linear techniques and examine the related choice of technique and shape of the demand for capital schedule. The primary conclusion regards the possibility of a decreasing demand for capital schedule combined with reswitching and reverse capital deepening.

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Paper provided by Economics and Econometrics Research Institute (EERI) in its series EERI Research Paper Series with number EERI_RP_2009_26.

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Date of creation: 09 2009
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Handle: RePEc:eei:rpaper:eeri_rp_2009_26

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Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
D46 - Microeconomics - - Market Structure and Pricing - - - Value Theory

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-09-26 (All new papers)
NEP-PKE-2009-09-26 (Post Keynesian Economics)

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Hatta, Tatsuo, 1976. "The Paradox in Capital Theory and Complementarity of Inputs," Review of Economic Studies, Blackwell Publishing, vol. 43(1), pages 127-42, February. [Downloadable!] (restricted)
Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December. [Downloadable!] (restricted)
Ian Steedman, 2009. "Many Capital-Output Ratios Increasing With The Interest Rate: An Industry-Level Analysis," Metroeconomica, Blackwell Publishing, vol. 60(1), pages 150-161, 02. [Downloadable!] (restricted)
Schefold, Bertram, 2008. "C.E.S. production functions in the light of the Cambridge critique," Journal of Macroeconomics, Elsevier, vol. 30(2), pages 783-797, June. [Downloadable!] (restricted)
Garegnani, P, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution: Reply," Review of Economic Studies, Blackwell Publishing, vol. 37(3), pages 439, July.
Garegnani, P, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution," Review of Economic Studies, Blackwell Publishing, vol. 37(3), pages 407-36, July. [Downloadable!] (restricted)

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This page was last updated on 2009-12-2.

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