Industrial Production Models: A Theoretical Study

by Sven Dano

Overview

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.

Product Details

ISBN-13:	9783709181423
Publisher:	Springer Vienna
Publication date:	01/22/2012
Edition description:	Softcover reprint of the original 1st ed. 1966
Pages:	220
Product dimensions:	6.69(w) x 9.61(h) x 0.02(d)

Table of Contents

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.- C. Discontinuities in General.- IV. Production Functions with Continuous Factor Substitution.- A. Factor Substitution and the Isoquant Map.- B. Production Curves and Diminishing Returns.- C. An Alternative Model.- D. Cost Minimization.- E. The Expansion Path and the Cost Function.- F. The Optimum Level of Output.- V. More Complex Models.- A. Substitution with Shadow Factors.- 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.- 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.- IX. Plant and Process Production Models.- A. Process Interdependencies and Optimization.- B. Vertical Integration of Processes.- C. Integration of Parallel Sequences of Processes.- X. Multi-Product Models.- A. Alternative Processes and Joint Production.- B. Alternative Processes.- C. Multi-Product Processes.- 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.