Used Capital: Implications for Isoquants, Production Functions, and Shepard's Lemma

Edward Miller

Eastern Economic Journal, 1988, vol. 14, issue 2, 141-152

Abstract: The quantity of capital services provided by a used capital good is usually defined so as to be proportional to the good's rent. Except in special circumstances, with this definition, isoquants will have a linear segment coinciding with part of the minimum cost isocost line; the production function will not be strictly quasi-concave; the cost function will not be differentiable; Shephard's lemma will not be applicable; and factor inputs will not be functions of factor prices. Similar problems occur for land a nd labor if their quality can vary.

Date: 1988
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://web.holycross.edu/RePEc/eej/Archive/Volume14/V14N2P141_152.pdf (application/pdf)

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:eej:eeconj:v:14:y:1988:i:2:p:141-152

Access Statistics for this article

Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

More articles in Eastern Economic Journal from Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Victor Matheson, College of the Holy Cross ().