Abstract:We provide micro foundations for the global production function (GPF) based on the standard microeconomic model, and we develop a parallel probabilistic model with similar properties. The theoretical and probabilistic models of the GPF are integrated in the context of a technology choice problem. We construct a primitive, named the augmented transformation function, to obtain a GPF and its associated joint distribution that includes the output and labor-saving and capital-saving technological innovations. This… Show more
Set email alert for when this publication receives citations?
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.