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Elasticities of Substitution and Firm Behavior

Shin, Euisoon (1981) Elasticities of Substitution and Firm Behavior. Social Science Working Paper, 385. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20171005-142422867

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Abstract

This paper investigates a firm's response to a factor price change in a competitive industry. R. G. D. Allen showed that the cross factor price elasticity is related in a particular manner to the elasticity of substitution under certain conditions. By introducing functional separability in the discussion, this paper transforms Allen's equation into one which explicitly incorporates the relation between the Allen partial elasticity of substitution and the intra- and inter-group elasticities of substitution.


Item Type:Report or Paper (Working Paper)
Additional Information:I would like to thank Roger Noll, Ed Green, and participants in the Economic Theory Workshop at Caltech.
Group:Social Science Working Papers
Series Name:Social Science Working Paper
Issue or Number:385
Record Number:CaltechAUTHORS:20171005-142422867
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20171005-142422867
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82126
Collection:CaltechAUTHORS
Deposited By: Jacquelyn Bussone
Deposited On:06 Oct 2017 18:26
Last Modified:03 Oct 2019 18:51

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