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The HQ Production Function
Author(s) -
KOHN ROBERT E.
Publication year - 1988
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1988.tb02049.x
Subject(s) - production (economics) , function (biology) , returns to scale , marginal product , product (mathematics) , simplicity , marginal cost , production function , degree (music) , economics , scale (ratio) , computer science , mathematical economics , econometrics , microeconomics , mathematics , philosophy , physics , geometry , epistemology , quantum mechanics , evolutionary biology , acoustics , biology
A sixth‐degree production function of Henderson and Quands (1958), that exhibits increasing and then decreasing returns to scale, is generalized to allow for non‐homotheticity as well as homotheticity. Although the long‐run function lacks the desirable short‐run attribute of the original function, it has the advantage that the cross‐marginal product is conventionally positive The simplicity and versatility of die HQ production function make it useful for computer simulations of long‐run competitive market equilibrium with a determinate number of firms.