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A Production Function with an Inferior Input

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  • Epstein, Gil S
  • Spiegel, Uriel

Abstract

The expanding car industry has revealed an increase in the use of robots and machines together with a decrease in labor. This phenomenon refocuses attention on the possible existence of labor as an inferior input with robots as rival technical alternatives. In our paper we suggest a specific production function that allows for inferior inputs. We verify the general conditions that have been developed in past research. Copyright 2000 by Blackwell Publishers Ltd and The Victoria University of Manchester

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  • Epstein, Gil S & Spiegel, Uriel, 2000. "A Production Function with an Inferior Input," Manchester School, University of Manchester, vol. 68(5), pages 503-515, September.
  • Handle: RePEc:bla:manchs:v:68:y:2000:i:5:p:503-15
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    Cited by:

    1. Paolo Bertoletti & Giorgio Rampa, 2011. "On Marginal Returns and Inferior Inputs," Quaderni di Dipartimento 145, University of Pavia, Department of Economics and Quantitative Methods.
    2. Kris De Jaegher, 2008. "Benchmark Two-Good Utility Functions," Manchester School, University of Manchester, vol. 76(1), pages 44-65, January.
    3. Paolo Bertoletti & Giorgio Rampa, 2013. "On inferior inputs and marginal returns," Journal of Economics, Springer, vol. 109(3), pages 303-313, July.
    4. Koji Okuguchi, 2010. "Inferior factor in Cournot oligopoly," Journal of Economics, Springer, vol. 101(2), pages 125-131, October.

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