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Research and Development in Computable Production Functions
Author(s) -
Luna Francesco
Publication year - 2004
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/j.0026-1386.2004.00189.x
Subject(s) - production (economics) , computable function , blueprint , computable general equilibrium , development (topology) , mathematical economics , economics , product (mathematics) , process (computing) , computer science , industrial organization , microeconomics , mathematics , engineering , mechanical engineering , mathematical analysis , geometry , algorithm , operating system
ABSTRACT In this paper, transmissibility and replicability of blueprints confine production functions to computable processes. The immediate consequence is that research and development and the emergence of technological innovations are naturally embedded in computable production functions. There is no need to introduce ad hoc probability distributions to model the arrival of innovations as the uncertain result of research and development activity. Rather, in this approach, well‐known results like the halting problem or Rice theorem harness production theory so as to encompass product and process innovation.