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Aggregating Capacity‐Limiting Separable Inputs
Author(s) -
Li Sung Ko
Publication year - 2002
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2002.tb00504.x
Subject(s) - aggregate (composite) , limiting , separable space , econometrics , index (typography) , empirical research , economics , mathematics , mathematical optimization , computer science , statistics , engineering , mathematical analysis , materials science , mechanical engineering , world wide web , composite material
The concept of separability is closely related to aggregation. Previous studies on separability are important mainly for theoretical contributions, not for empirical results. This paper provides a theoretical justification for using the maximum capacity of a subset of inputs as an aggregate index in empirical settings. The method is demonstrated with two examples, aggregating inputs within a firm and across firms.