Aggregating Capacity‐Limiting Separable Inputs

Sung Ko Li

Southern Economic Journal, 2002, vol. 69, issue 2, 470-478

Abstract: The concept of separability is closely related to aggregation. Previous studies on separability are important mainly for theoretical contributions, not for empirical results. This paper provides a theoretical justification for using the maximum capacity of a subset of inputs as an aggregate index in empirical settings. The method is demonstrated with two examples, aggregating inputs within a firm and across firms.

Date: 2002
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https://doi.org/10.1002/j.2325-8012.2002.tb00504.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:69:y:2002:i:2:p:470-478

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