Output Frontier: the Case of Joint Cobb-Douglas Production Functions with Variable Returns to Scale and Identical Input Intensities

Patrick Alexandre () and Jules Gazon
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Jules Gazon: University of Liège (Belgium) Faculty of Econonomics, Management and Social Sciences Department of Economics Service of International and Interregional Economics (SEII), http://www.egss.ulg.ac.be

SEII Working Papers from University of Liège Faculty of Econonomics, Management and Social Sciences Department of Economics Service of International and Interregional Economics

Abstract: Convex output set is common hypothesis in production theory and empirical applications such as the Data Envelopment Analysis. This seems to be taken for granted without any reference to returns to scale. This paper presents the demonstration for joint Cobb-Douglas production frontiers with variable returns to scale and identical input intensities. It confirms the results of Gazon (1999) which focus on the relation between returns to scale and the nature of output frontier shapes.

Keywords: output; frontier; simulations; Cobb-Douglas; production function; increasing; returns to scale; input; intensity; frontière; production; économies d'échelle; rendements croissants (search for similar items in EconPapers)
JEL-codes: B4 C00 D2 (search for similar items in EconPapers)
Date: 1999-10-24
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Persistent link: https://EconPapers.repec.org/RePEc:sei:seiiwp:991002

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