A constant elasticity of profit production function

Beard, Rodney (2007): A constant elasticity of profit production function. Unpublished.

Abstract

Impact analysis of changes in production inputs may be simplified if one can apply a constant adjustment factor to profit. In particular, if a production function can be found for which the elasticity of profit is constant and this function has desirable properties, then one can use the input elasticity of profit to study the impact of input changes on profit. In this paper such a production function is derived from first principles.

• Item Type: MPRA Paper
• Language: English
• Keywords: Impact analysis, Production economics, elasticities
• Subjects: D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity; M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M21 - Business Economics

References

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