Difference between revisions of "Production Function"
From Open Risk Manual
Wiki admin (talk | contribs) (Created blank page) |
Wiki admin (talk | contribs) |
||
| Line 1: | Line 1: | ||
| + | == Definition == | ||
| + | A '''Production Function''' denotes an assumption about the response of production oriented economic activities to changing market circumstances (prices for goods and services). A well-known production function in the context of [Input-Output Model]] is the Leontief model, a linear model based on Leontief production functions and a given vector of final demand. The fundamental assumption is fixed input structures | ||
| + | Implicit assumptions are: | ||
| + | * Constant returns to scale | ||
| + | * Sectors use inputs in fixed proportions: Leontief production function | ||
| + | |||
| + | == References == | ||
| + | <references/> | ||
| + | |||
| + | [[Category:EEIO]] | ||
Latest revision as of 16:36, 28 February 2022
Definition
A Production Function denotes an assumption about the response of production oriented economic activities to changing market circumstances (prices for goods and services). A well-known production function in the context of [Input-Output Model]] is the Leontief model, a linear model based on Leontief production functions and a given vector of final demand. The fundamental assumption is fixed input structures
Implicit assumptions are:
- Constant returns to scale
- Sectors use inputs in fixed proportions: Leontief production function
