Tag Archives: Joint Production

Figure 1: A Wage Frontier1.0 Introduction This post presents a numberic example of a non-interlocked system with fixed capital and no superimposed joint production. This seems to be the minimum multiple-sector model: Of the production of commodities by means of comodities With both circulating and fixed capital, In which the fixed capital consists of machines of non-constant efficiency with a physical lifetime of more than one period. This is a step in my research agenda of exploring...

Figure 1: Prices of Production1.0 Introduction This post presents a new kind of fluke case in the analysis of the choice of technique, at least new to me. I call this a pattern for requirements for use, and it can arise only in a case of joint production. My graphs in this post have some incomprehensible notation, since I am currently exploring perturbing parameters, in line with my research agenda. I know that perturbing the requirements for use removes the indeterminancy in this example....

I have defined patterns of switch points in considering perturbations of examples of the choice of technique. For example, I have defined three-technique and four-technique patterns. An obvious extension is to consider how these patterns arise in models of joint production. A simplification is to only consider models of fixed capital without superimposed joint production. This post lays out an example in which, maybe, some parameter values can lead to a three-technique pattern. I am...

Figure 1: A Partition of a Parameter Space for the Schefold Example1.0 Introduction I want to revisit a perturbation analysis of an example, from Bertram Schefold, of reswitching with fixed capital. Suppose workers use a machine to produce something or other, where the machine lasts several production periods. It is a possible choice to run the machine for less than its full physical life. One might think than choosing to adopt a technique with a longer economic life of the machine...

Figure 1: Two Dimensional Pattern Diagram1.0 Introduction This post extends an example from Bertram Schefold. It presents markup pricing in an example with a machine that can be operated for two years or junked after one year. This is a case of joint production in which, unlike in some cases, the choice of technique can still be analyzed by the construction of the wage frontier. Also, I do not think the question of requirements for use enter in here, and all matrices are square. As usual,...

Figure 1: A Pattern Diagram with Joint Production1.0 Introduction This post completes an example. I analyzed bits of this example here and here. This post may make no sense if you have not read a long series of previous posts or, maybe, the papers highlighted here and here. I am interested in how and if my approach to analyzing and visualizing variations in the choice of technique with technical progress extends to joint production. The example suggests fake switch points do not pose an...

Figure 1: Wage Curves and The Price of Corn for the Fluke CaseIntroduction This post extends a previous post. I am basically introducing structural dynamics into an example, by Bidard and Klimovsky of fake switch points. At a rate of profits of zero in the example, the price of corn is zero for Alpha, one of the two techniques that is cost-minimizing there and for somewhat higher rates of profits. At a time before the fluke case, only the Gamma technique is cost-minimizing at a rate of...

Figure 1: Wage Curves with Corn as Numeraire1.0 Introduction This post presents an example of a fluke switch point in which the choice of technique cannot be analyzed by the construction of the wage frontier. Under joint production, the technique that is cost-minimizing, for a given rate of profits, does not necessarily maximize the wage. Nevertheless, one can still see what I call a pattern over the wage axis in this case. The example is a generalization of the numerical example in...

Figure 1: A Two-Dimensional Pattern Diagram1.0 Introduction This post continues this example of the application of pattern analysis to the study of fixed capital. I generalize the technology in the previous post. Technical progress can now proceed at different rates in the production and use of machines. I partition the resulting two-dimensional parameter space based on how the distribution of income, in the system of prices of production, alters the economically efficient length to run...

Figure 1: A Pattern Diagram1.0 Introduction In this example, I perturb parameters in an example of Bertram Schefold's. I was disappointed in that, as far as I can see, one can analyze the choice of technique in this example by the construction of the wage-rate of profits frontier. As far as I understand, this is not true for joint production in general. I guess I also need to find an example in which the physical life of a machine is at least three years so as to find a three-technique...