Normal Forms for Switch Point Patterns

Robert L. Vienneau

Review of Behavioral Economics, 2018, vol. 5, issue 2, 169-195

Abstract: The choice of technique can be analyzed, in a circulating-capital model of prices of production, by constructing the wage frontier. Switch points arise when more than one technique is costminimizing for a specified rate of profits. This article defines four normal forms for variations in the number and sequence of switch points with a perturbation of, for example, a coefficient of production. The ’perversity’ of switch points that appear on and disappear from the wage frontier is analyzed. The conjecture is made that no other normal forms for local patterns of co-dimension one exist.

Keywords: Choice of technique; Reswitching; Capital-reversing; Cambridge capital controversy (search for similar items in EconPapers)
JEL-codes: B51 C67 D24 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://dx.doi.org/10.1561/105.00000080 (application/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:now:jnlrbe:105.00000080

Access Statistics for this article

More articles in Review of Behavioral Economics from now publishers
Bibliographic data for series maintained by Lucy Wiseman ().