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Technical Changes and the Rate of Profit in Models with Joint Production and Externalities: A Duality Approach
Author(s) -
Fujimoto Takao,
Ranade Ravindra R.
Publication year - 1998
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00046
Subject(s) - economics , rate of profit , externality , generalization , duality (order theory) , profit (economics) , production (economics) , production model , microeconomics , production rate , profit rate , mathematical economics , joint (building) , econometrics , mathematics , engineering , industrial engineering , mathematical analysis , architectural engineering , discrete mathematics
This paper generalizes a result due to Okishio: the rate of profit increases as a result of cost reducing technical changes. The generalization is carried out first in a model of joint production which allows for new processes and commodities to be introduced or some of the old ones to be discarded. Then we consider nonlinear models incorporating external and internal (dis)economies