Dimensional Analysis of Production and Utility Functions in Economics

Kim, Minseong (2015): Dimensional Analysis of Production and Utility Functions in Economics.

Abstract

This paper explores dimensional analysis of production and utility functions in economics. As raised by Barnett, dimensional analysis is important in consistency checks of economics functions. However, unlike Barnett's dismissal of CES and Cobb-Douglas production functions, we will demonstrate that under constant return-to-scale and other assumptions, production function can indeed be justified dimensionally. And then we consider utility functions.

• Item Type: MPRA Paper
• Language: English
• Keywords: dimensional analysis; production function; utility function; consistency in economics
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; C - Mathematical and Quantitative Methods > C0 - General > C00 - General; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical

References

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