Industrial Production Models: A Theoretical Study

ISBN-13: 9783709181423 / Angielski / Miękka / 2012 / 220 str.

Sven Dano

Opis

This book is a result of many years' interest in the economic theory of pro- duction, first aroused by the reading of Professor ERICH SCHNEIDER'S classic Theorie der Produktion. A grant from the Danish-Norwegian Foundation made it possible for me to spend six months at the Institute of Economics, University of Oslo, where I became acquainted with Professor RAGNAR FRISCH'S penetrating pioneer works in this field and where the plan of writing the present book was conceived. Further studies as a Rockefeller fellow at several American univer- sities, especially an eight months' stay at the Harvard Economic Research Pro- ject, and a visit to the Unione Industriale di Torino have given valuable impulses. For these generous grants, and for the help and advice given by the various institutions I have visited, I am profoundly grateful. My sincere thanks are also due to the University of Copenhagen for the ex- ceptionally favourable working conditions which I have enjoyed there, and to the Institute of Economics-especially its director, Professor P. N0RREGAARD RASMUSsEN-for patient and encouraging interest in my work. I also wish to thank the Institute's office staff, Miss G.SUENSON and Mrs. G. STEN0R, for their constant helpfulness, and Mrs. E. HAUGEBO for her efficient work in preparing the manuscript, which was completed in the spring of 1965.

Spis treści

I. Introduction.- 1. Entrepreneurial Behaviour and Optimization Models.- 2. Input-Output Relationships.- II. Some Fundamental Concepts.- 1. Production and the Concept of a Process.- 2. The Variables: Inputs and Outputs.- 3. The Technological Relations: The Production Function.- 4. Efficient Production and Economic Optimization.- III. Linear Production Models and Discontinuous Factor Substitution.- A. Limitational Inputs and Fixed Coefficients of Production.- B. Discontinuous Substitution: The Linear Production Model.- 1. The Production Relations.- 2. Optimization Problems.- C. Discontinuities in General.- IV. Production Functions with Continuous Factor Substitution.- A. Factor Substitution and the Isoquant Map.- 1. The Region of Substitution.- 2. Returns to Scale and Elasticities of Production.- 3. The Convexity Assumption.- 4. The Elasticity of Substitution.- B. Production Curves and Diminishing Returns.- C. An Alternative Model.- D. Cost Minimization.- 1. Marginal Equilibrium Conditions.- 2. Boundary Minima.- E. The Expansion Path and the Cost Function.- F. The Optimum Level of Output.- V. More Complex Models.- A. Substitution with Shadow Factors.- 1. “Product Shadows”.- 2. “Factor Shadows”.- B. Constrained Substitution.- C. Complementary Groups of Substitutional Inputs.- VI. The General Single-Product Model.- VII. Divisibility, Returns to Scale, and the Shape of the Cost Function.- A. Fixed Factors and the Production Function.- B. The Dimensions of Capacity Utilization.- 1. Spatial Divisibility.- 2. The Time Dimension.- 3. Divisibility in Space and Time.- C. Cyclic Processes.- D. The Relevance of the U-Shaped Marginal Cost Curve.- VIII. Product Quality and the Production Function.- A. Product Quality in the Theory of Production.- B. Quality Parameters in the Production Function.- C. Quality Constraints.- 1. Quality Functions and the Production Function.- 2. Quality Constraints in Blending Processes.- IX. Plant and Process Production Models.- A. Process Interdependencies and Optimization.- B. Vertical Integration of Processes.- 1. A Sequence of Processes with Continuous Substitution.- 2. Problems of Suboptimization.- 3. Other Examples of Vertical Integration.- C. Integration of Parallel Sequences of Processes.- X. Multi-Product Models.- A. Alternative Processes and Joint Production.- B. Alternative Processes.- 1. Process Additivity.- 2. Linear Models.- 3. Continuous Substitution.- C. Multi-Product Processes.- 1. Joint Production and Cost Allocation.- 2. Fixed Output Proportions.- 3. Linear Models.- 4. Continuous Product and Factor Substitution.- 5. Shadow Products.- 6. The General Joint-Production Model.- Appendix 1. Constrained Maximization.- A. Lagrange’s Method of Undetermined Multipliers.- B. Linear Programming and the Simplex Criterion.- C. Non-Linear Programming and the Kuhn-Tucker Conditions.- Appendix 2. Homogeneous Production Functions and the Law of Variable Proportions.- References.