Economics Dictionary of ArgumentsHome
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| Surrogate Production Function: The Surrogate Production Function is a theoretical construct used in capital theory debates. It assumes a smooth aggregate production function despite heterogeneous capital goods. Criticized by economists like Joan Robinson, it oversimplifies capital aggregation and ignores reswitching, where different capital-labor ratios can be optimal at different interest rates. See also Production function, Capital structure._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Paul A. Samuelson on Surrogate Production Function - Dictionary of Arguments
Harcourt I 8 Surrogate Production Function/Samuelson/Harcourt: We (…) review Samuelson's 1962(1) paper on the surrogate production function, the object of which was to provide some theoretical justification for the use, under certain conditions, of a one all-purpose commodity model both in pure theory and econometric work. >Production function, >Aggregate production function. Harcourt I 123 Surrogate production function/Samuelson/Harcourt: (…) „the 'Surrogate Production Function', can provide some rationalization for the validity of the simple J. B. Clark parables which pretend there is a single thing called 'capital' that can be put into a single production function and along with labor will produce total output (of a homogeneous good or of some desired market-basket of goods). In so doing, I may also be providing some extenuations for Solow's holiday high-spirits.“(1) (p. 194.) >J. B. Clark, >Surrogate production function/Solow, >Capital/Robinson, >Capital theory, >Cambridge Capital Controversy, >Economic models, >One commodity model. 1.Samuelson, P.A. [1962] 'Parable and Realism in Capital Theory: The Surrogate Production Function', Review of Economic Studies, xxix, pp. 193-206._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconSamu I Paul A. Samuelson The foundations of economic analysis Cambridge 1947 Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
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