Materials, Capital, Direct/Indirect Substitution, and Mass Balance Production Functions
Jeroen van den Bergh
Land Economics, 1999, vol. 75, issue 4, 547-561
A foundation is provided for a correct and accurate analysis of the relationship between monetary values and physical dimensions in economic production. A distinction is proposed between direct and indirect substitution. Linked to this, a classification is offered of various types of substitutability and complementarity relationships between production factors. It is argued that the neoclassical production function may be consistent with mass balance, but is unsuitable for a detailed and accurate understanding of changes in production that influence materials use. For this purpose, general production functions satisfying mass balance are formulated, drawing upon the proposed classifications.
JEL-codes: Q20 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
A subscripton is required to access pdf files. Pay per article is available.
Working Paper: Materials, Capital, Direct/Indirect Substitution and Mass Balance Production Functions (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:75:y:1999:i:4:p:547-561
Access Statistics for this article
More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().