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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

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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File URL: http://www.eeri.eu/documents/wp/EERI_RP_2009_26.pdf
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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels 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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Keywords: Production; continuum linear techniques.;

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  1. Garegnani, P, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution: Reply," Review of Economic Studies, Wiley Blackwell, vol. 37(3), pages 439, July.
  2. Hatta, Tatsuo, 1976. "The Paradox in Capital Theory and Complementarity of Inputs," Review of Economic Studies, Wiley Blackwell, vol. 43(1), pages 127-42, February.
  3. Ian Steedman, 2009. "Many Capital-Output Ratios Increasing With The Interest Rate: An Industry-Level Analysis," Metroeconomica, Wiley Blackwell, vol. 60(1), pages 150-161, 02.
  4. 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.
  5. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
  6. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  7. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, November.
  8. Garegnani, P, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution," Review of Economic Studies, Wiley Blackwell, vol. 37(3), pages 407-36, July.
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