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Comment on "C.E.S. production functions in the light of the Cambridge critique"

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  • Gandolfo, Giancarlo

Abstract

The controversy revived in Bertram Schefold's paper is based on three common assumptions: (1) the underlying techniques are linear (2) perfect competition obtains (3) the economy operates in a putty-putty context. The consequences of dropping these assumptions are discussed, and the relation between nonlinearity and the error due to the use of an "imprecise" production function is examined.

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  • Gandolfo, Giancarlo, 2008. "Comment on "C.E.S. production functions in the light of the Cambridge critique"," Journal of Macroeconomics, Elsevier, vol. 30(2), pages 798-800, June.
  • Handle: RePEc:eee:jmacro:v:30:y:2008:i:2:p:798-800
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    Cited by:

    1. Michael Knoblach & Fabian Stöckl, 2020. "What Determines The Elasticity Of Substitution Between Capital And Labor? A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 847-875, September.
    2. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.
    3. Hideki Nakamura, 2010. "Factor Substitution, Mechanization, And Economic Growth," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 266-281, June.

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