A Production Function with an Inferior Input

Gil Epstein and Uriel Spiegel

Manchester School, 2000, vol. 68, issue 5, 503-515

Abstract: The expanding car industry has revealed an increase in the use of robots and machines together with a decrease in labor. This phenomenon refocuses attention on the possible existence of labor as an inferior input with robots as rival technical alternatives. In our paper we suggest a specific production function that allows for inferior inputs. We verify the general conditions that have been developed in past research.

Date: 2000
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