Prada-Sarmiento, Juan David (2010): A note on concavity, homogeneity and non-increasing returns to scale. Published in: Economics Bulletin , Vol. 31, No. 1 (4. January 2011): pp. 100-105.
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This paper provides a simple proof of the result that if a production function is homogeneous, displays non-increasing returns to scale, is increasing and quasiconcave, then it is concave. If the function is strictly quasiconcave or one-to-one, homogeneous, displays decreasing returns to scale and if either it is increasing or if 0 is in its domain, then it is strictly concave. Finally it is shown that we cannot dispense with these assumptions.
|Item Type:||MPRA Paper|
|Original Title:||A note on concavity, homogeneity and non-increasing returns to scale|
|English Title:||A Note on Concavity, Homogeneity and Non-Increasing Returns to Scale|
|Keywords:||Homogeneity; Concavity; Non-Increasing Returns to Scale; Production Function|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D20 - General
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C60 - General
|Depositing User:||Juan David Prada Sarmiento|
|Date Deposited:||05. Jan 2011 06:13|
|Last Modified:||12. Feb 2013 12:44|
Bone, J. (1989): “A Note on Concavity and Scalar Properties in Production,” Bulletin of Economic Research, 41(3), 213–217.
Dalal, A. (2000): “Strict Concavity with Homogeneity and Decreasing Returns to Scale,” Atlantic Economic Journal, 28(3), 381–382.
Friedman, J. W. (1973): “Concavity of Production Functions and Non-Increasing Returns to Scale,” Econometrica, 41(5), 981–984.
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A note on concavity, homogeneity and non-increasing returns to scale. (deposited 16. Dec 2010 18:00)
- A note on concavity, homogeneity and non-increasing returns to scale. (deposited 05. Jan 2011 06:13) [Currently Displayed]