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A Note about the Interest Rate and the Revenue Function

Neri Salvadori () and Ian Steedman

Eastern Economic Journal, 1988, vol. 14, issue 2, 153-156

Abstract: Economic systems with a positive, uniform, and constant interest rate have been widely studied. It is shown that, in such systems, the presence of produced inputs undermines some standard results concerning the revenue function. The partial derivative, with respect to a product price, is not always equal to the net output of the product and the generalized positive supply response is not always valid. P. A. Samuelson's reciprocity conditions are also upset.

Date: 1988
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Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

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Handle: RePEc:eej:eeconj:v:14:y:1988:i:2:p:153-156