Timeline for CES v. Leontief Aggregator in Production
Current License: CC BY-SA 4.0
6 events
| when toggle format | what | by | license | comment | |
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| Oct 21, 2019 at 1:40 | comment | added | Herr K. | @FrankSwanton: I'm afraid I'm not very familiar with the literature you're referring to. Sorry. | |
| Oct 20, 2019 at 15:34 | comment | added | Frank Swanton | Hi Herr, what I meant is that I am more interested in the justification of capital "aggregation". When you have more than 1 capital types and instead of putting them into the production function as individual arguments, often there is a justification for aggregation of such capital. Do you know any good reference to how theoretically macroeconomists justify this type of aggregation? An example could be an expensive and cheap capital or durable and non-durable or foreign exchange rate risky and non-risky, etc. | |
| Aug 1, 2019 at 21:23 | comment | added | Herr K. | @FrankSwanton: I'm not sure what you mean by types of capital, but a common example of a Leontief production technology would be a car, which requires 4 tires and 1 steering wheel, in fixed proportion. | |
| Aug 1, 2019 at 12:51 | comment | added | Frank Swanton | Hi Herr, thanks for the response. I was trying to get to a real-life scenario where a production process would require two distinct types of capital to be used in fixed proportions. Can you think of an example? I am trying to think why it would be in such case... | |
| Aug 1, 2019 at 12:50 | vote | accept | Frank Swanton | ||
| Jul 31, 2019 at 17:26 | history | answered | Herr K. | CC BY-SA 4.0 |