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On Factors Substitutability and the Production Possibility Frontier in Multi-sectoral Economies

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Author Info
Drugeon, J.-P.
Abstract

This contribution raises the importance of factors substitutability in multi-sectoral economies. The argument is developed within a basic environment with two goods and two inputs and is based upon a close articulation between the features of the frontier of the production possibility set and the underlying sectoral production technologies. This brings up a direct articulation between the aggregate elasticity of substitution between the two outputs, the aggregate elasticity of substitution between the two inputs and the sectoral elasticities of substitution between the two inputs.

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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 2000.124.

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Length: 22 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:pariem:2000.124

Contact details of provider:
Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Web page: http://cermsem.univ-paris1.fr/
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Related research
Keywords: PRODUCTION ; TECHNOLOGY ; SUBSTITUTE PRODUCTS;

Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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This page was last updated on 2009-12-16.


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