Dvoskin, Ariel and Fratini, Saverio M. (2015): On the SamuelsonEtula Master Function and Marginal Productivity: some old and new critical remarks.

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Abstract
The paper addresses the ambiguity that surrounds the conception of capital and its role in neoclassical priceanddistribution theory. The difficulties encountered in the various attempts to define the marginal product either of capital or of a capital good are recalled and the conclusion is drawn that neither concept appears theoretically sound. This is combined with critical discussion of the recent attempt by Samuelson and Etula to determine income distribution by means of their ‘Master Function’ and its ‘nonneoclassical’ marginal products. Rather than the existence of a continuum of alternative technical possibilities, Samuelson and Etula assume the simultaneous coexistence of a discrete number of methods of production for the same commodity. Even though each technique employs the inputs in fixed proportions, the coexistence of various techniques permits the full employment of an arbitrarily given vector of input endowments. As is shown here, however, the coexistence of methods required for the differentiability of the SamuelsonEtula Master Function can take place, if capital goods are used in production, neither in the case with stationary relative prices nor in the nonstationary ArrowDebreu framework.
Item Type:  MPRA Paper 

Original Title:  On the SamuelsonEtula Master Function and Marginal Productivity: some old and new critical remarks 
Language:  English 
Keywords:  capital – capital goods – marginal product of capital – Master Function  neoclassical theory of value and distribution –Samuelson 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B2  History of Economic Thought since 1925 > B21  Microeconomics C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis D  Microeconomics > D2  Production and Organizations > D24  Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity D  Microeconomics > D4  Market Structure, Pricing, and Design > D46  Value Theory D  Microeconomics > D5  General Equilibrium and Disequilibrium > D51  Exchange and Production Economies 
Item ID:  63415 
Depositing User:  Saverio M. Fratini 
Date Deposited:  06. Apr 2015 13:05 
Last Modified:  06. Apr 2015 13:31 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/63415 