A note on 2-input neoclassical production functions

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Abstract

In this short note, we show how the space of elasticity of substitution functions maps into the space of 2-input neoclassical production functions. In doing so, we derive a general analytical formula for every 2-input neoclassical production function of class  C2. We present a simple set of sufficient conditions for the Inada conditions to hold; and prove that the Solow model under capital-augmenting (or investment-specific) technical change is asymptotically balanced if and only if the capital share converges to a non-degenerated limit as the capital–labor ratio tends to infinity.

Original languageEnglish
Pages (from-to)80-86
Number of pages7
JournalJournal of Mathematical Economics
Volume67
DOIs
Publication statusPublished - 1 Dec 2016
Externally publishedYes

Keywords

  • Capital share
  • Elasticity of substitution
  • Labor share
  • Production function
  • Solow model

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