Psychology Dictionary of ArgumentsHome
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| Factor price frontier: The factor price frontier represents the relationship between the prices of production factors (e.g., wages and capital returns) given a production technology. It shows the trade-offs in factor payments under different income distributions and technological conditions, helping analyze income distribution and capital-labor substitution in economic models. See also Factor price, Factor market, Factors of production, Production, Production theory, Capital._____________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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Robert Solow on Factor Price Frontier - Dictionary of Arguments
Harcourt I 114 Factor price frontier/Solow/Harcourt: As a digression Solow derives the factor-price frontiers for the CobbDouglas and Worswick(1) cases and analyses the shifts which technical progress causes in them. >Cobb-Douglas production function, >Capital/Worswick. Harcourt: The analysis is neat, but what is it supposed to teach us? The order of magnitude of the rise in real wages that may be expected if the rate of profits is kept constant while technical progress occurs? Then these neighbourhood islands of long-period equilibrium, despite frequent changes in technique, hardly seem the appropriate tools to use (though the Phelps' [1966](2) have tried them out). 1. Worswick, G. D. N. [1959] 'Mrs. Robinson on Simple Accumulation. A Comment with Algebra', Oxford Economic Papers, xi, pp. 125-41. 2. Phelps, E. and Phelps, C. [1966] 'Factor-Price-Frontier Estimation of a "Vintage" Production Model of the Postwar United States Nonfarm Business Sector', Review of Economics and Statistics, XLVIU, pp. 251-65._____________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. |
Solow I Robert M. Solow A Contribution to the Theory of Economic Growth Cambridge 1956 Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
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