Tag Archives: Joint Production

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...

Figure 1: A Labor Demand Function1.0 Introduction I am not sure the above graph works. I could draw three-dimensional graphs in PowerPoint, for models specified with algebra, where relative sizes are indefinite. But, I would need to be able to draw parallel lines, and so on. This post presents a model of extensive rent, with one produced commodity. A labor demand function, for a given rate of profits, graphs real wages versus employment. The resulting function is a non-increasing step...

Figure 1: A Bifurcation Diagram1.0 Introduction I have been looking at how bifurcation analysis can be applied to the choice of technique in models in which all capital is circulating capital. In my sense, a bifurcation occurs when a switch point appears or disappears off the wage frontier. A question arises for me about how to apply or visualize bifurcations in models with land, fixed capital, and so on. This post starts to investigate this question by looking at a numerical example of...