Shared Inputs and Peak Loading in a Neoclassical Framework

John Hartwick

Working Paper from Economics Department, Queen's University

Abstract: Attention is focussed on the degree of substitutability between capacity or capital, the input shared by the different periods over a demand cycle, and variable inputs, the inputs specific to each period. A general expression is obtained for the proportion of price in each period attributable to the shared input. Only in the extreme case of no substitutability should peak user pay the entire capacity costs. Increasing return to scale of the production function type and of the pipeline type are investigated as well as pricing constraints and comparative statics shifts.

Pages: 20
Date: 1977
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:qed:wpaper:274

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().