The Representation of Production

Stephen DeCanio ()

Chapter 4 in Economic Models of Climate Change, 2003, pp 94-125 from Palgrave Macmillan

Abstract: Abstract “Tastes” and “technology” are the fundamentals upon which neoclassical general equilibrium models are built. While the representation of tastes is expressed through utility and demand functions, the underlying productive technology of the economy is represented by production functions that relate various quantities of various inputs to the output produced by firms. This approach requires a behavioral theory that describes the activity of firms as they carry out the processes of production. The behavioral theory is profit maximization, which parallels the utility maximization of consumers on the demand side of the economy. While some of the conceptual and mathematical difficulties that plague the representation of preferences are common to the treatment of production in the models, there are several important differences.

Keywords: Data Envelopment Analysis; Production Function; Economic Model; Capital Stock; Agent Problem (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-50946-7_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230509467

DOI: 10.1057/9780230509467_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().