|
|
Cobb-Douglas function |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Cobb-Douglas functionA popular functional form for production and utility functions. With arguments X = (X1,...,Xn), the function is F(X) = APiXiai, where Siai = 1 and A are positive constants. This function has elasticity of substitution between arguments equal one. As a production or utility function, it has competitive expenditure shares equal to ai.Similar MatchesMultifunctionalityMultifunctionalityRefers to the purposes that an industry may serve in addition to producing its output. Most often applied to agriculture by countries that wish to subsidize it, who argue that subsidies are needed to serve these other purposes, such as rural viability, land conservation, cultural heritage, etc. Functional distribution of incomeFunctional distribution of incomeHow the income of an economy is divided among the owners of different factors of production, into wages, rents, etc. Utility functionUtility functionA mathematical expression that assigns a value to all possible choices. In portfolio theory, the utility function expresses the preferences of economic entities with respect to perceived risk and expected return. SMAC functionSMAC functionAn acronym for the CES function based on the names of the four authors who introduced it in Arrow et al. (1961). Neoclassical production functionNeoclassical production functionA production function with the properties of constant returns to scale and smoothly diminishing returns to individual factors. Further SuggestionsTeams FunctionalEssential purpose (or function) bond Probability function Supply function Cost function Conservative Social Welfare Function CES Function Utility function Teams Cross Functional Demand function Dixit-Stiglitz function Bergsonian social welfare function Homogeneous function Translog function Constant elasticity of substitution function Probability density function Production function Social welfare function Reaction function |
|
|
|