# Questions tagged [leontief]

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### How to find the contract curve for a funky utility involving the min operator?

Suppose a pure exchange economy where agents’ ($A$ and $B$) preferences are given by the following utility functions: $u_A = \min(3x+y,x+3y)$ $u_B = x^\frac{1}{2} y^\frac{1}{2}$ Find the contract ...
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### Interpretation of the Elements of the Leontief Inverse (Total Requirements Matrix)

I found what I believe to be slightly different interetations of the individual elements of the Leontief Inverse (total requirements matrix): Miller and Blair (2009) just after Equation (2.12) mention ...
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### why not use $Ap - p$ instead of $p - Ap$?

I am watching this video about the Leontief input-output model: https://youtu.be/hlaBURtSDO8?t=12m26s One thing I don't understand is: why not use $Ap - p$ instead of $p - Ap$? It seems to make ...
1 vote
3k views

### Weird Leontief production function

I am solving some micro related exercises and I came across this weird Leontief production function: $$Q =\left(\min\{K, L\} \right)^b$$ I am not sure how to solve it. I have to find the inputs' ...
1 vote
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### First Reference Leontief/Perfect Complements

I googled a lot and I'm still to find: 1. In which paper/book/reference do Leontief [production] functions make their first appearance? Similarly 2. In which paper/book/reference do perfect ...
1 vote
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### maximizing leontief-type utility function

How do I maximize the utility function: $U(x,y)= max(ax,ay)+min(x,y)$ , where $0<a<1$ with respect to prices $p_{x}, p_{y}$ respectively and income $m$. I know leontief-type utility ...
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### Constant Elasticity of Substitution: Special Cases

Take an $n$-commodity constant elasticity of substitution utility function, $$U = \left[\sum^n_{i=1} \alpha_i x^\rho_i \right]^\frac{1}{\rho}$$ How do we show the following: Show that as \$\rho \...
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### Leontief preferences and 2nd welfare theorem

Does the 2nd welfare theorem hold with Leontief preferences? If not, which of the assumptions does not hold?
In most Microeconomics textbooks it is mentioned that the Constant Elasticity of Substitution (CES) production function, $$Q=\gamma[a K^{-\rho} +(1-a) L^{-\rho} ]^{-\frac{1}{\rho}}$$ (where the ...