SECTORS MAY USE MULTIPLE TECHNOLOGIES SIMULTANEOUSLY: THE RECTANGULAR CHOICE-OF-TECHNOLOGY MODEL WITH BINDING FACTOR CONSTRAINTS

Faye Duchin () and Stephen H. Levine

Economic Systems Research, 2011, vol. 23, issue 3, 281-302

Abstract: We develop the rectangular choice-of-technology model with factor constraints, or RCOT, a linear programming input--output model for analysis of the economy of a single region. It allows for one or more sectors to operate more than one technology simultaneously, with the relatively lowest-cost one supplemented by others if it encounters a binding factor constraint. The RCOT model solves for sector outputs, goods prices that are set by the highest-cost technologies in use, and scarcity rents that correspond to binding factor constraints experienced by the lower-cost technologies. The model is motivated by the fact that mineral deposits of different qualities may be exploited simultaneously, as may primary and recycled sources for the same materials or irrigated and rain-fed techniques for producing the same crop. RCOT generalizes Carter's square choice-of-technology model, in particular adding the factor constraints that allow several alternatives to operate simultaneously. The Appendix gives a numerical example.

Date: 2011
References: View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://hdl.handle.net/10.1080/09535314.2011.571238 (text/html)
Access to full text is restricted to subscribers.

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:taf:ecsysr:v:23:y:2011:i:3:p:281-302

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CESR20

DOI: 10.1080/09535314.2011.571238

Access Statistics for this article

Economic Systems Research is currently edited by Bart Los and Manfred Lenzen

More articles in Economic Systems Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().